Gen X has been known for having some bad luck with finances. It is best to pay attention to your financial situation and these are 10 bad financial habits Gen X should stop making.
Neglecting Retirement Savings Due to Other Priorities
It is important to save money for retirement. But sometimes other priorities get in the way and you forget about, well, saving for retirement. Helping kids with college or taking care of older parents will all distract you from saving. Make sure you are putting money in your 401(k) or IRA so you will have money for the future.
Having No Emergency Fund
There are a lot of costs that come up unexpectedly. Are you prepared? Not having enough money for an emergency fund is setting yourself up for failure. It’s best to have money saved up for when something unexpected happens.
Taking Out Student Loans for Your Kids
You love your kids, that’s a given. But don’t put yourself into a bad financial situation by taking out a student loan for them. Taking out a student loan could affect how much debt you have and could also affect how much money you have for retirement. It is best to discuss college plans before doing anything risky like taking out a student loan.
Forgetting To Look at Different Health Care Coverage
Health insurance is important to have and is something that is usually top of mind. Did you know that there are other types of health insurance you should also be checking out? Life insurance, disability insurance, and long-term care insurance are all things you should have. They could help you out with situations out of your control in the future.
Not Paying Your Debts
The worst thing you can do is not pay your debt. If you have debt that you don’t pay off, this can really affect your retirement, meaning you have less money in the future. It is best to pay off debts before you even think about retirement.
Forgetting to Re-Evaluate Your Investments
Re-evaluating your investments is a good idea to make sure you have what you need for retirement. If you don’t know where to start, it is recommended that you go to a financial advisor and they can help you figure out what you need to do with your investments.
Having No Retirement Plan
Having no retirement plan is setting yourself up for failure. If you don’t have any money saved for retirement, then you are never going to retire. It is important to have money set aside for when you do retire and to make sure you have all the tools you need ready to go.
Being Overly Independent
Being overly independent may mean that pride will get in the way when you need help. It is good to be independent, but it is also good to know when to ask for help. There is nothing wrong in hiring a financial advisor to help you with your finances and savings towards retirement.
Read More: 10 Things Gen X Can Do To Fix Their Finances
Not Having a Budget
Spending money freely and not paying attention to every cent you spend is a recipe for disaster. If you don’t have a budget, you won’t know where your money is going and you might dwindle your savings. It is extremely important to pay attention to how you spend your money! Your future self will thank you.
Read More: 10 Skills Gen X Has the Rest of the World Should Master
Not Having Savings
Money is supposed to be used. However, it is good to have a nest egg for the future. If you don’t have savings, then you are doing yourself a disservice. Make sure you have at least three to six months worth of expenses saved. This will prevent headaches in the future.
Read More: Ten Things People Don’t Know About Gen X
