People often say that life is too short to worry about tomorrow as a justification to do something rashly instead of thinking things out carefully. But as often the case, life can sometimes take you longer than you would expect it to. A 20 year old discussing a short life may actually live for another 50 long years, and a 30 year old not looking forward to old age may actually live until 90. It is for this reason that when it comes to making financial decisions, a long outlook in life is necessary. The decisions we make today can have a significant on the remainder lives, so be careful with your choices.
Nancy Anderson, a senior financial planner at Key Private Bank, in a post in Forbes, identified the financial decisions young people make that could haunt them in their 50s. And these include:
The Company You Work For
This factor matters particularly in terms of retirement benefits. According to Anderson, retirement benefits are vital to long-term wealth building. She believes that a 30 year old who chooses to work for company with no retirement contribution could be way behind than someone who works for a company with robust benefits.
Your Starting Salary
Why does this matter? “… A high starting salary can significantly jumpstart your earning potential,” said Anderson, citing a study by George Mason University and Temple University which showed that those who negotiated their salaries enjoyed an average of $5,000 salary increase than those who didn’t.
Your Choice of Partner
Looks like you should be really careful about who you marry. Well, it’s not that you should marry for money, just quite the contrary. Marry out of love. Choose someone with whom you are likely to spend the rest of your life with. Yes, someone with whom you aren’t likely to divorce. This is because divorce is not only devastating emotionally, but also financially.