We often share retirement savings tips in our blogs, to hopefully help you become better prepared for the future. But there’s another consideration: What mistakes could you avoid now that might have cost you money in the long run?
Often, these mistakes fall into one of these 6 categories:
You regularly rearrange your financial priorities. You might feel that retirement savings are important, but then switch your focus to saving for a house, and then next year you want to travel. The truth is that retirement savings should come first, always, and everything else can fall in line behind that.
You want to get rich quick. The rare cases in which someone got rich seemingly overnight are mostly based on luck. The vast majority of people who try to get rich quickly and easily end up broke. Remember that slow and steady is the way to save for retirement.
You allow your emotions to control your decisions. Try not to give in to panic every time the market drops a bit. Your goal is to make money over a long period of time, and whatever happens this week can change very quickly in coming weeks or months.
You can’t access cash for emergencies. An emergency strikes, but you don’t have any cash set aside in a rainy-day fund. So, you’re tempted to use credit cards, borrow from your retirement fund, or take out a home equity line of credit. Preparing for emergencies can help you avoid excessive debts.
You underestimate yourself. It’s easier to save more money for retirement when you’re earning a higher income. If you underestimate your earning potential, you might not ask for a raise when one is due or apply for that advanced position when it opens up.
You’re procrastinating. You keep promising yourself that you’ll start saving for retirement, but you don’t actually do it. Take a hard look at your spending and saving habits, and identify ways that you can make your own financial future a top priority.
We can help you with that last item. Give us a call, and we’ll discuss how you can get started saving for retirement, or bump up your savings rate to better achieve your goals.