ORLANDO, FL (Ivanhoe Newswire) — As we age, our relationship with money changes. However, whether you’re in your 20s, 30s, or even 60s, there are money mistakes that you’re making that could be costing you thousands. Money matters
“The same old money mistakes that have been talked about for generations is living outside of your means,” says Renee Varga a Certified Public Accountant with Moss, Krusick & Associates, LLC.
But certain money mistakes are more common for certain age groups. In your 20s, racking up too much student debt is one of the most common mistakes. Taking out more than a 30 thousand dollars loan for a profession that pays less than six figures could have you paying back your loan for decades.
In your 30s, not starting to invest is a big mistake. Start up by building up an emergency cash fund, then tackle maximizing your retirement account.
“The 401k. If you, if it’s offered by your employer, take advantage of it. Especially at the, a young age,” said Varga.
The biggest mistake people in their 40s make is not aggressively paying down their debts. According to data from the federal reserve bank of New York, people in their 40s had the most debt of any age group, averaging about 78 thousand dollars per person. Raiding your retirement fund in your 50s or co-signing loans in your 60s are costly mistakes to make. Being on the edge of retirement, you need every penny you can save.
Another common mistake in your 50s and 60s is not delegating financial responsibilities before cognitive degeneration sets in. According to a Georgetown University study, the peak financial decision-making age is 53. Waiting until your 70s or 80s can lead to costly financial mistakes like not reading the fine print on investment accounts.
Sources:
https://www.businessinsider.com/the-worst-money-mistakes-of-every-decade-2014-2
https://www.businessinsider.com/personal-finance/average-american-debt#average-american-debt-by-age
https://www.wsj.com/articles/the-biggest-money-mistakes-we-makedecade-by-decade-1477275181
Contributors to this news report include: Marsha Lewis, Producer; Milvionne Chery, Writer; Roque Correa, Videographer and Editor.
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