Top 3 Financial Mistakes to Avoid As You Age

As you age, saving for retirement and making good investments becomes more and more important. It’s common to make financial mistakes, but avoiding common mistakes can help you maximize your retirement savings and crush your financial goals. These are the top three financial mistakes to avoid as you age. 

Invest and Track Your Investments:

In order to retire and in order to retire well, you need to invest your savings. It isn’t enough to save money and tuck it away into a savings account. It needs to be invested so that it can grow and provide you with greater returns that you can then use to retire in old age. As you continue to earn more and grow in your profession, you want to make sure that you are continually re-evaluating your investments and putting more money away.

Your retirement goals are also likely to change as you age and it is important to not only invest, but to also track your investments. Know what your rate of return is and know how much you have in your investment accounts. Set an annual date to review your investments and make decisions about your current investments. If it’s difficult to review your investments on your own, work with a financial consultant every few years to get advice and tailor your financial investments towards your financial goals. 

Buying More Than You Can Afford:

This may seem like a no-brainer but many people purchase a larger home or a more expensive car than they actually need. They want to keep up with everyone else and so they spend more to have flashier, more exciting homes and cars that they cannot afford. The same can be said for clothing, vacation travel, furniture, and other home or beauty products. Create a budget and work to stay within it. Make sure that your budget allows you to save and invest. 

Living Without Insurance:

Too many people gloss over insurance and consider it something that they can deal with later. They will “get around to it,” but in reality most never do. Insurance is vital. While many people do get health insurance, they do not take the time to ensure that they choose a health insurance plan that has enough coverage for their lifestyle or age.

Many people forget to check their home insurance and life insurance as well to ensure that they have the appropriate insurance for their needs. Too often, we see people find themselves in bad situations. When they look to their insurance after something happens, they find out that their insurance does not cover their situation. Be proactive and review your insurances: home or renter’s insurance, health insurance, life insurance, disability insurance, and even pet insurance. 

Remember, it is never too late to begin making good financial decisions. However, the earlier you begin making good decisions, the better your financial future will be. If you are currently making any of these three common financial mistakes, course correct and fix these mistakes as quickly as possible. You owe it to yourself to have a secure future free of financial woes.

Yorkville Advisors, LLC is a privately owned hedge fund sponsor. The firm also provides specialty financing solutions to its clients.