Financial Mistakes To Avoid At Different Ages

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

As we go through life, we are bound to come across different situations and circumstances that require us to make some financial decisions. However, considering that our age influences those situations and therefore the decisions that we make, it is important for us to be aware of how what we choose to do and how we choose to act can impact us at different stages of our lives. Below, we break down some financial mistakes that you should avoid during different decades of your life.

Your 20s

This is likely the time in your life where you'll begin working your first full-time job, and therefore receive your first full-time paycheck. With this new kind of income, it can be pretty tempting to feel like you're on top of the world and spend more than you can actually afford. So, avoid living out of your means so that you don't wind up with debt at an early age.

At the same time, it's also crucial that you begin saving for retirement because not saving will only set you back. The earlier you get started, the better off you'll be.

Your 30s

At this stage, you might be considering marriage if you haven't already, meaning you and your soon-to-be spouse might also be looking into buying a house. Especially when it comes to your first house, don't buy something that you can't afford, even if it's only slightly over budget. If you get into a habit of assuming that things will just "work themselves out," you could wind up in trouble financially down the road.

While you're in your 30s, it's also crucial that you don't forget about insuring yourself. We all like to think that we're in the clear when it comes to unexpected circumstances, but life can throw a ton of twists and turns at us so we need to be prepared - that means, start looking into life and disability insurance.

Your 40s

By now you might have children that are getting ready to think about college, and we all know that tuition isn't cheap. But as much as you want to help your children cover the cost, don't forget about what you need to do for yourself financially, such as continue to save for retirement.

In your 40s it's also easy to get wrapped up in what others around you have - your neighbors, your children's friend's parents - but don't try to keep up with everyone. Always remember to be your own person, and again, live within your means.

Your 50s/60s

Retirement is almost here, so you'll need to keep this in mind when making any decision that requires your finances. For example, if your child asks you to co-sign for something, don't do so without really thinking about if they can afford the payments. Why? Because if they can't, you'll wind up responsible, which could cause you to dip into your retirement savings.

Lastly, also don't forget to calculate your retirement income. You absolutely should know how much income you'll have each month, both from your own savings and outside sources, so that you can figure out a living situation that works best for you and your family.

Here at American Investment Planners LLC, we know that your life is going to be full of decision making where your finances are concerned, and we want to help you make sure you're making the right ones. For more information about our financial planning services, which include, but are not limited to, retirement planning, estate planning and tax planning, please give us a call at (516) 932-5130.

Above information courtesy of Emerald Connect.