The sound of retirement may be extremely sweet to your ears but it can be extremely bitter once you actually get there. Retirement can be both a beautiful dream and a nightmare for you and it solely depends on how you work towards the end result. One cannot just simply continue with his daily regimes and wait for his retirement to come. Everyone needs to make some arrangements well before their retirement. In order to secure your future, you obviously need to secure some funds which will be of great support to you when you have no other source of income. Most people make the mistake of not planning ahead taking the concept of retirement too lightly or figuring it is so far off in the distance.
Here are 5 things that you must immediately stop doing with your money:
- Stop building your credit debt: If you seriously think that you are valued because your credit card company says so, then you are making a huge mistake. There is practically no way that you are getting any advantage from a credit card if it simply makes you spend more. Credit card bills can also pile up. It is best to pay the bills in full payment and on time each month in order to avoid the amount to grow in the future.
- You are not investing: Another big mistake that people make during the younger years is that they keep too much money sitting in liquid assets rather than investing it. According to, Things You’re Probably Doing Wrong with Your Money, investing money will likely grow fast enough to keep up with the inflation or rising prices. It will also let you retire comfortably with more than enough funds.
- You aren’t aware of your net worth: Most people commit the mistake of thinking that they will begin retirement with no problems because they are earning well when younger. People always think in terms of monthly payments which are more than enough to get them by, but they never try to assess their total net worth which is actually the total of their assets minus any money that they might owe.
- You don’t know about your costs: When we have a constant income, we generally don’t sit down and calculate all of our expenses, however, post retirement, we need to calculate mandatory expenses beforehand because no longer having a constant income. We also need to always keep a surplus amount of money after our mandatory costs for any emergency expenditures such as medical costs. According to, Top 10 Reasons People Go Bankrupt, A recent Harvard University study showed that medical expenses account for approximately 62 percent of personal bankruptcies in the US.
- You take risks without analyzing the situation: Another very common mistake that individuals make these days is that they take dangerous risks with their money without properly analyzing the situation as well as possible future outcomes. Everyone should invest, however, investing without proper information will not lead to any good so consulting a financial advisor is always appropriate advice.