Everybody wishes to have financial security later in life but most people spend so much of their earnings with very little investment and savings. Here are some of the financial mistakes people commit before retirement
Missing on financial education
During childhood, it’s unlikely that most individuals get a chance for financial education. It is, therefore, the responsibility of the parents to equip children with concepts of savings. Children especially in their teen scan at times get part time jobs and the mistake that most make is not to save.
Focusing so much in education
Going into the 20s most people get consumed in college education and graduating and thus do little in terms of saving. Besides spending much on education the choice of major is another mistake that one may make because most choose something interesting instead of a path that will provide a better life.
Spending so much and saving so little
When you are 30 you could be earning a considerable amount and how you spend your disposable income makes a difference in future. In this bracket, you might be tempted to spend on something like a fancy car but this will be a big mistake if you do. Most people miss on investment in their 30s and spend on things that cannot increase their earning.
In 40s people tend to spend more on life symbols which increases their fixed expenses thus less saving. At this age, one should be investing and saving more for retirement and people make the mistake of not saving enough.
Having a rigid saving strategy and not saving enough
Family demands can be overwhelming which can seriously affect the one’s savings. Most people in 50s spend more on educating their children and other expense. If you fail to relook your investment strategy then you may end up in trouble. You may also make a mistake of not investing enough for early retirement
Sometimes people make the mistake of leaving their jobs before saving enough to take care of their retirement expenses. Paying high taxes in your 60s is another mistake that people make especially since you are nearing retirement.
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