Top Ten Personal Financial Mistakes – Part 6: Failing to Save for Long-Term Needs — NMBankruptcyBlog.com

How do you end up in financial distress? There are many reasons, and, when it comes to facing a potential bankruptcy, very often the biggest triggering event is a medical crisis or a divorce. But there are smaller factors that can add up to your finding yourself in a big crisis. This is the sixth in a series on what one bankruptcy attorney identifies as the “Top Ten Personal Financial Mistakes” people make. His list is useful for all of us to review and consider, and his posts link to helpful resources available on the web. Be sure to click on the link below to his post and check out the resources he provides, too.

Here’s an excerpt from the series by Eugene S. Melchionne, Connecticut Bankruptcy Attorney at www.bankruptcylawnetwork.com.

Start saving now for your long-term financial goals. This means setting up now for retirement. There is every suspicion that social security will not be there when you retire. In fact, social security was never meant to be a substitute for a retirement fund, it was meant as a supplement and a minimal funds for those without.

The earlier you start saving for retirement will mean the more that you will have available when you do retire. A twenty year old who puts aside $25 a week for retirement will have nearly $1.2 million at age 65. Yet a 50 year old who just starts putting aside $250 a week for retirement will have only $450,000.00 at age 65. Which would rather be at 65 years old? Save early and save often.

“Retirement” often is thought of as the time when you don’t have to work AND you have enough money somehow coming to you so that you can have a decent life style, including paying rent or a mortgage, being able to cover all uninsured medical expenses, healthy food and … here’s the dream for many: traveling, doing “everything” you didn’t do while you were working.

Where will the money come from? Many of us simply don’t know how much we will have, and we also don’t know how much the things we want and need will cost “then”.  Today’s retirees are facing big stresses with the recent astronomical increase in the cost of putting gasoline in their cars, and fear what the winter’s heating costs will be, with good reason.  Saving something now helps you have more later.

Earlier posts in the series: Failing to Live With Direction, Living Beyond Your Means, Borrowing Money With Credit Cards, More on Borrowing From Credit Card Companies, Having No Emergency Fund

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