Experience is often the best teacher. Unfortunately, you rarely get a do-over when it comes to long-term financial decisions. Simple decisions in one time of your life can lead to a world of trouble later on!
Let's continue addressing a series of money decisions from Forbes' "10 Financial Choices You'll Regret in 10 Years," regarding financial choices we make in the earlier part of our lives that are surprisingly important—but we don't always see how important they are until it is too late.
Here are the next five decisions:
- Trying to be a DIY investor when you haven't a clue what you're doing. Would you try an open heart surgery after watching a few YouTube videos? Of course not. So why would you consider investing by yourself without the help of a professional?
- Viewing important insurance policies as being lame. If you passed away today, what kind of shape would you leave your family in? You may need life insurance or disability insurance—and perhaps long-term care insurance if you're over 55 years old. Don't avoid a review of insurance policies that will protect you from financial ruin.
- Treating your retirement like a distant second cousin. Saving for retirement is crucial. If you're depending only on Social Security for income, think again and think much harder! You won't be able to maintain the lifestyle you want in retirement with Social Security alone unless you're the most frugal person in the country. Perhaps not the most desirable title to have when trying to enjoy your golden years.
- Neglecting important money conversations with your spouse. Want to blow it big time? Go ahead and try to handle all of your financial goals without the input of your spouse. These money decisions should be discussed and agreed upon. It will be worth it, now and in the future.
- Not realizing how recurring expenses add up. We take for granted the idea of paying for high cable bills and cell phone plans or financing cars and homes that perhaps are more expensive than necessary. Try calling your cable company and cell phone company to negotiate a lower monthly fee. See if there are other recurring expenses that you can trim, or eliminate altogether.
Reference: Forbes (February 15, 2016) "10 Financial Choices You'll Regret in 10 Years"