Do you live paycheck to paycheck? An unforeseen problem can become a disaster if you're not prepared. The cumulative result of overspending can put you in a precarious position. If an economic recession were to hit, it would leave you with very few options.
Financial planners tell you to keep three months' worth of expenses in an account that can be accessed quickly. Loss of employment or a serious health issue can drain your savings and place you in a cycle of debt. A three-month buffer can keep you from losing your house.
What other mistakes should we steer clear of?
After all, to accomplish anything you need to have a plan. Ask yourself where you want to be in five, 10 or 20 years. This is the start of avoiding financial planning errors.
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