Especially in times like these, everyone’s looking for ways to save money. Daniel Adler at Forbes.com has an excellent feature identifying seven ways being lazy may be costing you money, and how little changes can make for big savings.
My personal favorite, and possibly the most expensive of the seven:
Not Opening a Retirement Fund (As Soon As Possible)
Twenty-somethings aren’t necessarily in touch with their own mortality. Take a hint: Old age comes quick, and you’ll need a serious retirement stash if you want to ride it out in any kind of style. Too bad for those who don’t bother to set up a 401(k) account–one that can automatically draw a certain percentage from each pay check without you having to lift a finger. Consider: If a 40-year-old starts saving $5,000 annually at 6% interest per year (a conservative assumption based on historical returns for the stock market), he would have $291,000 at age 65; if that same person started saving that much 15 years earlier, at 25, he would have amassed $821,000, three times as much. How to set a up 401(k)? Simply call your company’s human resources department–you’ll be enrolled in a matter of minutes.
One mistake I think should have been included is paying ATM fees. Getting cash from your own bank’s ATMs will save you big bucks in the long run, but sometimes you’ve got to walk a couple blocks or even (gasp!) plan ahead.
Can you think of any other examples of slothful behavior that cost you money? Post your own suggestions in the comments!
2 Trackbacks
[...] seem daunting but it doesn’t have to be. Whether you’re investing megabucks for fun or squirreling away a few dollars a week for retirement, free online resources like these are great for allowing you to catch up to — and even [...]
[...] recently wrote about the costly financial mistakes that young people most often make, typically through sheer laziness. No. 2 on the list? “Not Opening A Retirement Fund (As Soon [...]