5 Mistakes That Can Deplete Your Retirement Savings

These mistakes very often fly under the radar. They are hidden. But, the results are not.

Making the wrong money decisions keep us from building wealth and prevent us from achieving our goals, and the results can be drastic.

You’re Not Exploiting Your 9 to 5 Job

A lot of companies offer a “company match” if you invest in their company-sponsored 401(k). This means the company will match your contributions up to a certain percentage of your salary. This is free money and a great way to build consistent wealth over time.

You’re Following Your Passion

You might love to work with your hands and build furniture, but you’re far more likely to build serious wealth with your skills and strengths (i.e., computer science) than your passion (building furniture).

Don’t just save. Invest. Aim to invest at least 20% of your salary in index or mutual funds. If you can’t invest 20% yet, that’s fine. Work your way up. Write down a tangible goal and work to achieve it.

You’re Only Saving 10% of Your Salary

You Don’t Have an Emergency Fund

Your emergency fund is your lifeline. If you don’t have money set aside for a rainy day, you’re living your life at risk. Your emergency fund is money set aside for an unexpected expense.

Credit card debt is the worst type of debt, period. Why? Because it’s high-interest debt, and credit card debt destroys your credit score over time.

You’re Not Paying Off Your Credit Card

Think of your credit card as a convenience, not a way to spend money that you don’t have. Credit cards offer many benefits, including cash-back, travel points, and even warranties on some of the things you buy with the card. But, you need to pay off the card each and every month for it to be worth it.

Swipe up to learn more!