Avoid These Costly Financial and Retirement Mistakes to Secure Your Future

Financial and Retirement Mistakes Even the Wealthy Make

Plenty of rich people are putting their future financial security in jeopardy. We all make mistakes -- personal mistakes, financial mistakes, and all kinds of other mistakes. We often assume that people who are smarter or richer or otherwise different from us don't make such blunders, but that's not very true. For example, even the wealthy make plenty of financial mistakes.

Top 7 Mistakes:

1. Being underinsured: Insurance mistakes are made by people all along the wealth spectrum. If you don't carry enough insurance on your home, you may need a lot more money than you have in order to rebuild it.
2. Overpaying for things: As people grow wealthier, they might feel less pressure to comparison shop, seek sales and bargains, and generally spend as wisely as possible. This leaves money on the table.
3. Not being ready for emergencies: Millions of people -- even many who are wealthy -- don't have sufficient emergency funds. It's best to always have at least three to six months' worth of all non-negotiable living expenses available.
4. Trying to keep up with others: Buying expensive items can hamper your ability to save for the future or drive you into debt.
5. Not saving enough for retirement: It's crucial to develop a good retirement plan and set up multiple income streams.
6. Not updating asset allocations: Periodically review your portfolio to ensure your money is still distributed as you want.
7. Not having an estate plan: Estate planning involves having a will and other documents spelling out how you want your assets divided.

Focusing on your own financial affairs and managing your money well can help you avoid these costly blunders.