4. I’m Counting On Social Security, So There Is No Necessity For Me To Save

May be, people who are retired would say that they want social security. Young professional who depend on social security are probably taking a wrong decision. Social security in today’s world appears cold for those who will retire in the upcoming years.

The main reason is, the money that you put into the program will not fetch you benefits that it’s promised.

5. I Work Hard For My Money So I Deserve To Have Fun

Well! There is nothing wrong in spending money and have fun. After all it’s your money and you have every right on it. Spend money to enjoy with your loved ones but at the same time saving a part of your money for your retirement is important.

It’s very important to plan your finances well in advance. Like for instance, make sure that you don’t spend more than 50 percent of your total take home pay on your essential expenses like housing, transportation, groceries and utilities. Next, at least 20 percent of your total home pay should go to Financial Priorities like retirement contributions, savings contributions and debt payments.

When you follow a particular structure like this, you will have the liberty to spend money without worrying about the future.

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