It’s fun being scared by horror movies and costumes during Halloween season, but no one wants to be frightened by making the wrong financial decisions. You might think you have full control of your finances, but everyday consumers make major mistakes that eventually come back to haunt them.
Matt Loverine, a financial professional in Milwaukee with the MetLife Premier Client Group, offers five scary mistakes that people make with their money:
- Waiting too long to save for retirement. Retirement doesn’t seem so scary when it’s far in the future, but if you don’t save now, you will miss the retirement boat completely. Too many Americans fail to open a 401K or IRA early in their working years.
- Carrying a large balance on your credit card. It’s very scary to carry a large balance that you can’t pay off for years. Credit card debt will eventually create obstacles when making a down payment on a house or vehicle.
- Claiming Social Security too early. If you’re in good health and can wait to claim your social security, you’ll get an extra 8 percent per year on your retirement benefit for each year you delay between ages 66 and 70.
- Avoiding insurance. Renters insurance, car insurance and health insurance may be something you think you can live without, but not having it can cost you fines and out-of-pocket costs, if something should happen.
- Not having an emergency fund. Not having a “rainy day” fund can leave you in hot water. Many suggest three to six months’ worth of household expenses. If something bad happens, you might think you have no choice but to pay bills late and ruin your credit score or worse, take out an unwanted loan.