Chris Whitlow, CEO of financial wellness benefits provider, Edukate, says the top money faux pas he sees is not having an emergency fund. “60% of Americans don’t have enough money in savings to cover an unexpected $500 expense. Expect the unexpected and budget for it. A simple way to achieve this is to set up an automatic withdrawal of $10 per week. Over the course of a year, you’ll save $520 and not become part of that statistic,” Whitlow says.
Here’s a list of the top 8 money mistakes to avoid in 2018, according to Edukate.
1. Not having an emergency fund
Set up an automatic withdrawal every paycheck to start building up your emergency fund.
2. Not maxing out your retirement plans
Once your debts are cleared and your emergency fund is full, what’s next? There’s no arguing the 401(k) is a great way to fund your long term savings, especially if you aren’t one of the lucky people to have a pension. Consider the tax advantages of maxing out both traditional and Roth 401(k)/403(b) contributions before you start saving elsewhere. For the rest, click here.