You’re probably not trying to do it on purpose, but there are things you are doing on a daily basis that have the potential to jeopardize your financial livelihood. Are you making the following mistakes?
Not Saving Enough for Retirement
Some people think that they need to be at least 45 before they start saving for retirement, but that’s simply not true. The earlier you start saving for retirement the better. It only makes sense to start when you’re younger because you will have more money, over time, to put into a retirement account. My best advice would be as soon as you have a stable job and can cover the basics, start putting away for retirement. You won’t believe how fast those funds add up overtime when you’re not looking.
Taking Too Much Time Off Work
Family always comes first is the motto that most people live by and it’s a great outlook. However, your livelihood is still important at the end of the day. When you choose to take time off to care for a loved one, there are still financial repercussions. Consider trying to keep up with your career in some way shape of form. Just because you can’t work full time, it doesn’t mean you can’t work at all. That gap in employment on your resume will make a recruiting manager do a double take, so don’t kid yourself.
Not Having Your Own Personal Income
If you’re not familiar with what a personal income is, then it may be time to pay a little closer attention to your finances. Personal income refers to an individual’s total earnings. If you’re in a situation where you do not have your own personal income, you may want to consider rethinking this. There are many things you can do to up your own personal income to use it for things live investing, retirement, and even everyday savings. If something were to happen and you had no personal income, it would be harder to get your finances moving again.
Having Multiple Income Streams
I’m personally a believer of having several different income streams. You have your main job that pays the bills and helps you maintain your daily living, and then you have extra income. Having multiple income streams to up your personal income helps in case of unemployment, paying for college, or even paying for basic every day issues that arise.
Depending Solely On Your Partner for Credit and Income
There are a lot of couples out there who depend on one partner for credit and income. In some situations, this can’t be changed. However, you’re jeopardizing your own livelihood by making this a long term occurrence. There may come a time when you need to apply for a car loan, get an apartment, or even take out a personal loan, and you won’t be able to because you’ve relied on your partner’s credit and income for several years. Maybe it’s time to rethink this mistake, so you no longer jeopardize your daily financial livelihood.
Lack of a Financial Plan for the Financial Peaks and Valleys
When it comes to finances, it’s easy to take care of the everyday, but it’s harder to prepare for those financial peaks and valleys. When you get a raise at work, it’s easier to go buy “more” instead of putting that money back for a rainy day. This is a huge mistake you’re making that is surely jeopardizing your livelihood. Make sure you’re planning, financially, for whatever may come your way in the future. It might hurt a little now, but you’ll thank yourself later.
Everyone makes financial mistakes, but it’s important to make steps towards fixing those mistakes. The longer you make the aforementioned financial mistakes, the harder they are to recover from.