I found this list online this morning. Looks like a good one:
The Top Ten Personal Finance Mistakes
1. Not having a goal and a plan for how to achieve it. We have debt, savings (short-term…need to work on those long-term goals), and net worth goals. The tricky part is keeping the goals updated and in front of you periodically.
2. Not being willing to change your behavior so you can get to where you want to be. This is tough for everyone. The key is not spending those raises you get every year. You’re goal should be to save any future earnings increases, instead of finding ways to spend them.
3. Not paying off your credit card debt each month. We’re fortunate enough to be able to do this. If you can’t pay it all off, consider moving the balance to a zero percent card.
4. Making only the minimum payment on credit card debt.
5. Failing to save at all or to save enough.
6. Waiting too long to save for long-term financial goals. Earlier the better. I wish I’d started right out of college.
7. Failing to take advantage of benefits provided by your employer, such as your 401(k) or life insurance.
8. Not having any or enough life insurance. When we have a child and my wife is at home we plan on getting some more life insurance. Right now we have the basic that my employer provides.
9. Overinvesting in company stock.
10. Letting emotion drive your investment decisions. Mutual funds are the epitome of unemotional.
Other mistakes I’ll add are:
11. Taking a loan from your 401(k).
12. Taking out a home equity loan for consumer debt.
13. Taking on more mortgage debt than you can handle. With all the sub-prime foreclosures out there right now, I’m surprised this wasn’t on the list.
What are some other mistakes I’ve missed?
This list came from “Top 10 Personal Finance Mistakes”, by Pamela Yip, The Dallas Morning News. Read the full article here.
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Great list. I advise people to stop buying things you cannot afford with money you do not have.
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