Don't Make These Financial Mistakes If You're Over 50
Don't Make These Financial Mistakes If You're Over 50
If you've reached a half-century of living life, congrats! Turning 50 is a huge milestone to be celebrated, but it's not quite time to be careless with your finances—here are some financial mistakes to be wary of.
Giving In To "Lifestyle Creep"
Whether you're excited because you're 50 and much closer to retirement or have been diligently saving to have a big 50th birthday blowout, or your salary has recently increased at your job, "lifestyle creep"
is when you allow your spending to outpace your salary gains. Just because you can now afford a new car doesn't mean you should buy one!
Underestimate How Much You'll Need For Retirement
While retirement may be many years away for you, one critical mistake those 50 and over make is underestimating how much they'll need for retirement. You must maximize your contributions to your 401K accounts sooner rather than later.
Not Investing Your Extra Funds In Something
"Playing it safe" with your money is fine; there is a fine line between being too cautious and too risky. While retirement may be on the horizon, it's not as close as you might think, and you still have plenty of time to invest your money in bonds or mutual funds and get a good return.
Not Investing In Yourself
Similarly to "playing it safe" with your money by not investing in the stock market, you can play it safe by not investing in yourself.
If you're constantly saving money but not traveling or doing other things with your money that could enrich your life, you're not investing in yourself. Spend some money and take that trip!
