Sure, maybe money isn’t the most important thing to everyone, certainly you have always heard that money doesn’t equal happiness, but there is a fine line on needed enough money to live off, especially during the retirement years when you should be able to leave the workforce behind and enjoy out your remaining years stress-free. Soon enough you’ll be of retirement age, so it’s best to focus on your personal wealth sooner than later, otherwise you will either be playing catch up, or have little to live off.
Putting Off Saving
A 401(k) account is a great way to save now that can grow over time, but the longer you put off, the less you’ll have to live off during retirement years. The longer you put off, the more you will have to contribute to catch up to the years where you should have contributed more. Some employers match contributions, so you should at least be contributing that much, otherwise that would be leaving free money on the table that could be growing over time. If you are not able to use a 401(k), there are IRA options as well.
Spending is Out of Control
In order to free up extra money every month then you really need to reduce unnecessary spending. Unless you curb spending, you really could be putting yourself at risk financially. If you’re not sure where exactly the money is going, a good idea is to take a look at last month’s credit or debit card statement and look line by line to see what was a needed expense and what probably could have been avoided. Add up all of those charges that could have been avoided and you could be shocked at what could be in your bank account instead.
Not Managing Risk
If you’re getting by with your finances on a month to month basis now that is great, but what is something unexpected happens and you have a huge charge come in such as a needed auto repair or home appliance, how would you pay for? Probably on a credit card, at which you are then in debt, trying to pay back over time, at which you could be struggling to pay. If you can create an emergency fund of a few months’ worth of expenses, you could give yourself a pretty good cushion to cover yourself if any unexpected charges come in.
Looking for the Next Get Rich Quick
If you are thinking of playing the lottery next, take a look at the odds of winning and hopefully that will change your mind on playing every week. The get rich quick scheme are just that, too good to be true, so also avoid any of the Tupperware or candle parties, trying to make a living, other than enjoying some discounts for your friends. If you are looking for extra income, try getting a second job in your free time, or even look to selling items that are otherwise sitting around the house collecting dust.
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