The American dream — we strive for it, but it will cost you! In fact, Investopedia has calculated what it costs. It adds up to $4.4 million dollars over a lifetime.
More than half of Americans earning over $100,000 a year are living paycheck to paycheck.
And now financial experts are sounding the alarm over a new financial trend, called being an ALICE, which stands for Asset Limited, Income Constrained but Employed.
They make enough money at their job to disqualify them from financial assistance but struggle to cover their monthly expenses.
So how can you overcome financial setbacks and be in control of your money? And what are the hardest lessons to learn when it comes to your finances?
Financial experts say there are key lessons to learn as you age. For people in their 20s, the most common money mistake is not taking advantage of 401ks and IRAs. Instead, invest as much as you can while you don’t own a house or have children.
In their 30s, too many people accrue bad debts and have poor credit scores. Protect yourself by establishing an emergency fund, keep investing, and take time to learn new skills that will increase your earning power.
And in your 40s, don’t abandon your budget when the needs of parents and children begin to add up.
And in your 50s and 60s, do not leave financial matters up to your partner. Know what’s happening at all times and begin retirement plans.
And do not spend your life savings supporting your adult children. They’ll thank you for it in the end.
Also, another mistake people make: Taking financial advice from family and friends. They’re offering opinions based on their own situation, not yours.
Be sure to steer clear of influencers or self-proclaimed social media finance experts. Instead, seek qualified, professional advice.