Listen, we all make mistakes. We’re human and, for most of us at least, trying to do the right things and make the correct decisions, especially when it comes to our money. Yes we all do things that we wish we hadn’t and burned through money that we wish we didn’t but, at the end of the day, a mistake here or there shouldn’t really destroy you financially if you’ve prepared well. Problems is, that’s where most people make their biggest mistake because they don’t plan or don’t plan well! (We humans are quite crazy, truth be told.)
3 the other far too common mistakes that we make, almost all of which in some way involve planning for our futures, are below. Take a look at them, let them sink in really well and then get to work changing the one’s that you’ve made or are making right now. Enjoy.
Mistake #1) Not saving anything or not saving enough for retirement. Yes you’ve heard it before but the fact is that there will come a day when you either won’t want to work anymore or just can’t. Unless you want to be a ward of the state you’d best have the money set aside to take care of yourself with, and that should start as soon as you hit the workforce in your 20’s.
Mistake #2) Not having and sticking with a budget is a big mistake that many people make and, over the long run, it can cost you heavily. Not knowing what’s coming in and, more importantly, what’s going out financial-wise is like trying to ride a motorcycle with a blindfold on; dangerous and scary. Without a budget you’ll miss many opportunities to save more money, money that could well be needed in the future.
Mistake #3) Not setting financial goals and sticking with them long term. Goal setting sounds about as much fun as watching grass grow but the fact is that the people who do set goals are the people that do more with their money (and their lives) than those who don’t, it’s just that simple. Goal setting needs to be a habit, not something you do once and forget, so that you’re constantly thinking about those goals and tweaking them to meet your new needs. This is the best way to make sure you retire wealthy by the way.
If you changed just one of these bad habits (or non-existent habits) into good habits you’d be well on your way to changing your financial health. If, on the other hand, you save habitually, stick to a budget resolutely and set goals purposefully (and follow up on them) you would have no other option than to retire in excellent financial condition. We think you’d have to agree that doing just that sounds like a great financial plan, yes?