Anyone could make money mistakes at one time or another, especially when you were young.
It’s quite common to make questionable financial decisions. However, while some money mistakes are harmless and just part of growing up, some could have a greater effect on your future than others.
Here are some of those money mistakes that will haunt you in retirement and how you can try to avoid them.
Not learning money management
If you live paycheck to paycheck and spend more than you earn without regard to financial emergencies, problems are inevitable down the road. Not setting yourself up for the future, especially for retirement, is a big no-no. How would you pay for a much-needed renovation, a car repair, or even a senior cruise?
That’s why it’s important to learn about money management while living within your means, no matter what age you are. Assess your financial goals and always leave room for improvement in budgeting.
When you borrow money you can’t afford to pay back
Taking on so much debt can cause problems, even on big salaries. Repayments will considerably drain your income, especially with loans that take years to pay back. Interest is one monetary charge that can cost thousands of dollars, long after the initial enjoyment of whatever “want” you paid for. Moreover, if you can’t make your repayments, your credit score will surely suffer.
Forgetting to sort out your super
While it seems you don’t have to do it, saving for retirement commences as soon as you start working.
If you have different super accounts but no idea where your funds are invested, there’s a big chance you are just wasting it on fees. So it’s vital to take an active interest in your super.
Be sure you know what fees are involved on your account, where the money is being invested, and what the insurance covers. You could also consider salary sacrificing to make extra contributions.
If you have more than one account, consolidate them to avoid paying multiple sets of fees.
Comparing yourself to others
You will always see your contemporaries overflowing with cash, wearing the trendiest clothes, or using the latest gadgets, living large! It’s not surprising to catch yourself daydreaming of having the same. But if you can’t afford it, keeping up with your friends will only send you broke.
The problem with getting mixed up in the wrong crowd is the pressure it puts on you to show off. Don’t be afraid to make your own financial decisions. And if you have real friends, they will surely understand.
Many people in their youth think they are invincible, where they won’t get sick or have any serious financial situations in the future. However, adults can attest that the cost of living is expensive, so It’s just wise to create a plan while you’re young.
Start with taking your finances seriously and planning your retirement early on. It doesn’t mean having eagle eyes all the time as you monitor your finances, and not having fun anymore. It just means making sure your future is secured. Otherwise, those money mistakes could return back to haunt you into your retirement, or worse, poorer future.
Using the ASAG Reverse Mortgage to improve your retirement income
We support our Australian customers who are about to enter retirement or already in retirement by offering our equity release solutions, One of which is our reverse mortgage.
One of the benefits of using the ASAG Reverse Mortgage to help enhance their income in retirement. It allows seniors to access the wealth in their home without ongoing payments and having to sell. The loan is paid off when you permanently leave your home, either you downsize, move to aged care, or pass away.
The funds you receive can be used as you see fit, including Retirement Planning or any other objectives in retirement.
Our friendly team can assist you with more details on how our reverse mortgage works. Our lines are open on 1300 002 724 and at firstname.lastname@example.org so you can contact us or send your enquiries about our equity release solutions.
You can also do your own assessment by using our free tool below to know your available equity.