ORLANDO, Fla. (Ivanhoe Newswire) — It’s nothing new that we all make mistakes when it comes to our money, but is there something to be learned from the past? Here are the most common money mistakes people have made throughout their lives, and how young adults can avoid them.
First in your twenties it’s important to start saving for your retirement. Even though it feels like you have plenty of time, waiting until you are 45 means you will have to put away three times as much money than if you start now. It’s also important to begin to build up your credit, open your own credit card and pay off the balance on time each month.
Then when you hit your thirties, you may reach a moment where you feel like you haven’t achieved enough. Remember it took your parents decades to get to where they are today, so don’t try to live too large. Make sure you spread your big decisions over a few years; from marriage to buying your first house or having your first child.
People in their forties tend to misjudge their big expenses. You should be focused on paying off all your debt, not spending excess on decorating the house. Experts say to restructure your mortgage, get it paid off well before you reach 65. Twenty-one-percent of Americans over the age of 75 are carrying their mortgages into retirement.
Eighty-percent of people between the ages of 30 and 54 believe they will not have enough money for retirement, and 38-percent of Americans don’t save for it at all. However, total costs for a couple over 65 for medical treatment over a 20-year span is over 200-thousand dollars.
Pinching your pennies will help you out in the long run, and just remember whenever you go purchase something compare in your head if it’s a want or a need. This could save you from buying a lot of junk you’ll regret later on. The average savings of a 50-year-old are around only 45-thousand dollars. Hence why it was important to start saving back in your twenties.
Contributors to this news report include: Gabriella Battistiol, News Assistant; Roque Correa, Editor.