Don't make these money mistakes - WSFA.com Montgomery Alabama news.

Don't make these money mistakes

Posted: Updated:
No matter what age you are, smart decisions can help you keep your financial life on track. (Source: CNN) No matter what age you are, smart decisions can help you keep your financial life on track. (Source: CNN)

(CNN) - Inevitably, over the course of life, we are going to make mistakes with how we handle our money.

In an article on dailyworth.com, financial writer Nancy Mann Jackson broke down some of the worst mistakes you can make at each age, according to financial experts.

In our 20s, most of us spend more than we earn during this time. Instead, focus on learning how to live on a budget, becoming debt free and starting a 401(k) early.

In our 30s, most aren't thinking about life insurance. But the experts say that now really is the time to get it because you can get a low rate locked in now for 20 or 30 years.

By our 40s, a lot of us have kids who are growing up and might be getting ready for college. Save for college but not at the expense of our retirement savings. At this point, keep saving. Compound interest is still your friend.

In our 50s, most of us may get too defensive with our savings during this decade. But according to the experts, this time is not just about preserving our savings, we need to keep adding to it. Also, they suggest, though it's not an absolute rule - be wary of co-signing loans for things like a house or car for your kids. Only co-sign a loan you actually plan to pay.

And in our 60s, during this age many of us have underestimated the cost of medical expenses, especially if you had planned on living on a regular monthly income during retirement. One tip - build some of those future health costs into your retirement plan.

Now, this may be easier said than done but the experts say the earlier you start thinking about your finances, the better.

Copyright 2014 CNN. All rights reserved.

Powered by WorldNow