While you may think that you’ve got your finances sussed, you could be making some money mistakes you’re not even aware of. So that you can stay in control of your wealth, here are three common financial habits you might want to break.
1. Skipping life insurance
Unlike certain types of financial protection, such as car cover, life insurance is an optional policy that you have the choice of purchasing. Although you may currently be in tip top physical shape, the fact is that you could be struck down with a serious illness or experience a fatal accident at any time. If you were to become ill, or even die, and you were no longer able to provide an income, you could be leaving your family is an extremely stressful and financially difficult position. To ensure that your loved ones are looked after in your absence, you should consider taking out this type of cover. Normally, you can pay for your life insurance premium monthly and it can be as little as a couple of pounds each time. Purchasing a policy is easy and hassle-free, and you can get a life insurance quote on the internet from a broker website, where you will be able to review and compare different policies from a wide range of providers before settling for one that is perfectly suited to you.
2. Failing to have an emergency fund
It’s near impossible to predict when something bad is going to happen. Whether your car needs an urgent repair or you’ve got a leaky pipe at home, unless you have the funds readily available, it’s likely you’ll find yourself in a tricky situation. To avoid this, it could help to have a stash of money saved which is there for you should you need to use it. Having some funds set aside for emergencies will mean you’re prepared should you become stuck, and it will give you added peace of mind.
3. Not contributing to a pension scheme
In your younger years, it can be easy to consider pensions as a waste of money and it’s difficult to imagine what your life might be like decades down the line. The truth is, if you make the effort to contribute into a pension scheme now, you’ll be better off once you get to retirement age and be able to continue living a comfortable, happy life as you get older. This may not be enough to meet your needs in later life, so it's a good idea to pay into a work-based or private pension