5 Worst Money Mistakes You Can Make

Written by on September 4, 2012 in Money - No comments | Print this page

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If you are like many others who have found themselves searching for life insurance quotes online, this is about the same time you also started thinking about investing for your future.

Alternatively, perhaps you already made a money mistake, and now your stress levels have elevated, knowing that retirement will be here before you know it. Well, before you start frantically investing in opportunities that look promising, but you know nothing about, you better make sure that you are making the right decisions or you could find yourself in an undesirable situation. Below are the worst money mistakes that are easily made that you need to do your best to avoid.

Making Use of Rewards Credit Cards

Many people get drawn in by the idea of receiving an award, whether they need it or not, so if you are sitting there with credit card debt because of these exciting offerings, you are certainly not alone. It can be easy to justify, spending money on something that you do not need, simply because you know you are earning points or accumulating cash back. You may even buy things with the intention of paying the bill off completely when it comes in, but this never happens, because there is always an unexpected bill that comes up at the same time.

Being Scared of Debt

Fair enough, the word “debt” is terrifying to most people. Some are so scared of taking on too much debt that they actually take on too little. If there is a solid investment opportunity that could better your future, sometimes the debt is worth it. Does this mean that you should invest in every opportunity that comes your way? Absolutely not! There is a fine line that you need to walk when it comes to debt, and there is a good chance that your gut is telling you whether you are making a wise or foolish decision.


Trusting Social Security

If you are not taking action to safeguard your future now, you could be in a lot of trouble in the future. Many people put all their faith in social security, only to be disappointed. Not to mention, who is to say that social security is even guaranteed to be there when you need it? With how unpredictable the government is, and the vast number of surprises that come with each presidential election, it is a wonder that anyone trusts that social security will be there for them.

No Emergency Fund

While you may think that putting even $10 per week away will not really make much of a difference, it certainly will. That is about the cost of two specialty coffees per week from your favorite cafe, yet over a year, this will add up to $520. If you save this amount for the next 20 years, you will have $10,400. That is a nice nest egg that could be very helpful at some point. Alternatively, when you have emergency car repairs or need a new hot water heater, you can borrow from yourself, rather than charging it or taking out a high interest loan. You can even pay yourself back interest, if you feel guilty about dipping into your savings.

Not Enough Insurance

If you are searching for life insurance quotes online, but still thinking you have time to invest in it, you are making a huge mistake. How devastated will your family be should something happen to you tomorrow? Will your children have to sacrifice their college education? You can’t predict that you will be here tomorrow, next week or next year, and unfortunately, you can’t rewind death. Not investing in your family’s future is the biggest money mistake that you can make.

This is a guest post.  Looking for life insurance quotes online? Check out LifeInsuranceQuotes.info for instant rates.

Image by scottchan: FreeDigitalPhotos.net

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