Smoking or overeating
We might be talking about finances and money, but at the end of the day, health is the most valuable asset. If you don’t take care of yourself and give in to unhealthy habits such as smoking or overeating, you might have to suffer the consequences during your golden years, which will no longer be as golden.
Neglecting your healthy now might translate into expensive medical treatments later. So, pay attention to your body and mind, not only to save money in the long run but also to be able to spend as many years as possible with your loved ones.
Cashing out your 401(k) too early
If you plan on starting a new business, pay off your debts or make a major purchase that requires a large sum of money, cashing out your 401(k) might seem like a reasonable solution. After all, you have all the right to use that money however you please.
However, before tapping your 401(k) make sure you know all the pros and cons of such an action. Taking out money might come with a hefty withdrawal penalty not to mention you might lose the compound interest that worked in your favor for years.
