Look back at who you were in your 20s and 30s. If you could have a conversation with yourself, what money mistakes would you say to avoid?
Here are a couple big money mistakes I think people in their 20s and 30s often make.
People in their 20s
Two big mistakes people in their 20s make is spending more than they earn, and not saving for retirement.
When you’re young, retirement seems like it’s a lifetime away, but that mindset can hurt you financially. If you wait until you’re near retirement to start saving, you’ll have to save a lot more, a lot faster, so it’s best to start saving sooner rather than later.
A great lesson for anyone in their 20s to learn is the importance of compounding money. The earlier you start saving, the more money you will have later, and the more comfortable your retirement will be.
People in their 30s
Many people in their 30s settle down and get married, but one of the biggest mistakes they make is not buying the insurance they need to fully protect themselves and their loved ones. When you’re shopping for insurance, it’s important to consider which policy is right for you and your new family.
Also, many people in their 30s are still paying off their student loans or credit card debt from bad purchasing decisions they made in their 20s. It’s important for people in their 20s and 30s to pay down those debts as soon as possible, because it’s hard to grow your own wealth when you’re paying interest to someone else.
I asked my listeners to call in and share some of their biggest money mistakes and they gave some great tips. To hear their answers, click the audio link below and listen to the full Ilyce Glink Show on WSB Radio, or go to iTunes and download the show to your handheld device.
WSB Radio’s Ilyce Glink Show – June 1, 2014
Thanks for listening.