The first step in securing your financial future is to make a plan. But even if you have a plan, or even if you are in the process of creating a plan, there are pitfalls that you must avoid. Making critical financial planning mistakes can cost you tens of thousands of dollars in the future.
Because of this, you want to make sure you avoid these retirement planning mistakes at all costs.
Below is a list of 11 common financial planning mistakes that many people make. If you’ve made these mistakes, don’t feel bad as many others have as well.
The important thing is that you begin to work on fixing them so that you can still get ahead financially. Remember, it’s never too late to start moving in the right direction.
If you haven’t made these financial planning or retirement planning mistakes, good job! But you should still take some notes so you can avoid falling for them in the future.
11 Biggest Financial Planning Mistakes To Avoid
#1. Not Taking Action On Your Plan
Sadly this is the most common financial planning mistake. You put all your time and effort into creating your plan and get excited thinking about your financial goals and dreams becoming a reality.
Then you take a week off. That week turns into a month. Next thing you know, you have completely forgotten about your plan.
Make sure you don’t stop once your plan is made.
#2. Not Having An Adequate Emergency Fund
Many experts recommend three to six months of living expenses in an emergency fund. Given the tough economy, I think your emergency fund should be closer to nine months worth of living expenses.
Why? With such high unemployment, you never know when you may lose your job and you never know how long it may take you to find another one. It’s better to be safe than sorry.
You can start your emergency fund with CIT Bank. I use them and love them. They offer one the best yields on online savings accounts!.
#3. Not Creating A Budget
I know, there isn’t anything fun when it comes to a budget, which makes this an easy financial planning mistake to make.