4 Money Traps To Avoid At Any Age, Don't Fool Yourself

Getting to middle adulthood demands a shift in priorities. In today's expensive times, it is in one's own financial interest to develop a passive source of income in addition to one's regular income source. Don't make the mistake that you can keep your emergency fund savings in your 40s at the same level it was in your 20s.

One important rule of thumb: the younger you are when you buy a life insurance policy, the less you'll pay. I didn't know much about managing my money and made bad moves, like paying only the minimum balance due on my credit cards and letting the interest compound.

If you're unable to save any money for major purchases and long-term investments, you're living above your means. But as you enter your 30s and start earning more, you can start setting—and meeting—important money goals. Avoid these 10 money mistakes in your 30s, and you will set yourself up for financial freedom in your 40s and beyond.

This makes your savings efforts even easier if you want to reach a million dollars before you hit retirement. The most important aspects of a good financial plan are built upon the foundations of very strong money habits that are learned from an early age. If you have been on track with your savings and investments you will have your mortgage paid off (or close to it).

If taxes are eating up a considerable portion of your income, it is time that you start knowing the facts about retirement planning and start focusing on them as soon as possible. One way to do this is to set up money automatic transfers from your bank account to a savings account or investment account.

Don't make the mistake of having just one savings fund. That's because, according to Seek, this is how long it takes for most people to find a new job, which is a common reason for dipping into their savings. Of course, you're closer to retirement than if you'd started saving in your 30s, so you'll need to be more cautious with your portfolio.