Financial challenges are not limited to a specific age, but people tend to face certain challenges during particular stages of their lives. Regardless of your age, you might recognize some of these financial issues.<\/p>\n
<\/p>\n
In Your 20s
\nLiving beyond your means. When you have your first good job, it\u2019s tempting to spend money on the latest and greatest gadgets, entertainment and eating out, and travel. But if you can\u2019t pay for your wants up-front, you need to rein in your lifestyle. Too much debt can hold you back financially for a long time.<\/p>\n
Not saving for retirement. You\u2019ve got plenty of time, so harness that time to work for you. Start saving at least 3% of your annual salary now (more would be better), and your 67-year-old self will thank you.<\/p>\n
Not being financially literate. Learn as much as you can about saving, budgeting, and investing now so you can benefit from it for the rest of your life.<\/p>\n
In Your 30s<\/strong> Not protecting yourself financially. Life is unpredictable. What would happen if you were unable to work and earn a paycheck? Let go of the \u201cit won\u2019t happen to me\u201d attitude and protect yourself with life and disability insurance. The younger you are when you purchase coverage, the lower your premiums will be.<\/p>\n Still not saving for retirement. Maybe your 20s passed you by and retirement wasn\u2019t on your radar screen. Now that you\u2019re in your 30s, it\u2019s critical to start saving. Wait longer, and it will be hard to catch up. Start now, and you have 30 years or more to save.<\/p>\n In Your 40s<\/strong> Funding college over retirement. If you have limited funds, set aside a portion for college, but earmark the majority for retirement. Then sit down with your teenager and discuss academic options that your family can afford.<\/p>\n Not having a will or an advance medical directive. No one likes to think about death or catastrophic injury, but these documents can help your loved ones immensely if something should happen to you.<\/p>\n In Your 50s & 60s<\/strong> Raiding your home equity or retirement funds. Obviously, doing so will prolong your debt and\/or reduce your nest egg.<\/p>\n Not calculating your retirement income. As you approach retirement, you should know how much you can expect from Social Security, pension income, and your personal retirement savings.<\/p>\n These are just a few of the financial challenges you might face throughout your lifetime. There\u2019s a saying that wisdom comes with age, but it pays to be financially savvy at any age.<\/p>\n DMCC is a 501 (c)3 nonprofit organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with debt.\u00a0 Education is provided free of charge to consumers, as well as personal counseling to identify the best options for the repayment of their debt. To speak to a certified credit counselor, call toll-free 866-618-3328 or email\u00a0<\/em>contact@dmcconline.org<\/em><\/a>.DMCC is located at 1330 SE 4th Ave, Suite F, Fort Lauderdale, FL 33316.<\/em><\/p>\n Article from Financial Freedom Educational Services<\/p>\n
\nBeing house poor. Whether buying your first home or trading up, don\u2019t buy a house you can\u2019t afford. Build in some wiggle room for a possible dip in household income.<\/p>\n
\nTrying to keep up with the Joneses. The nice homes, cars, vacations, and \u201cstuff\u201d that others have might look appealing, but appearances can be deceiving. Your neighbors could be taking on lots of debt.<\/p>\n
\nCo-signing loans for adult children. Co-signing puts you on the hook if your child can\u2019t pay, a situation you don\u2019t want to face as you\u2019re approaching retirement.<\/p>\n