In their 20s
Individuals who just graduated from college tend to put off moving out of their parents’ house, especially if they want to save money. There is a high expectation on the career front that makes people in this age group tend to think very little about their financial futures. Common mistakes include:
- High credit card debt – financing a 20-something lifestyle can be expensive. Clothes travel, and socializing can take its toll on your wallet. These expenses tend to accumulate in the credit card bill.
- Foregoing 401(k) – retirement is the last thing on people’s minds when they’re young. This shouldn’t stop you from contributing though, because it’s always better to start early.
As they grow a bit older, people want to start a family, move into their own home, and attain financial stability. Unfortunately, many fall prey to financial oversights such as:
- Neglecting the emergency fund – having some money to fall back on is important. Depending on your job stability and personal situation can make the difference between coping and losing the house.
- Insufficient insurance coverage – most people are satisfied with just basic insurance. If this is the case for you, look around and determine if there are better options out there. It will help protect the wealth and stability that you’ve built up.