10) Unexpected Hardships
The truth is that tragedies and unexpected expenditures will come up in everyone’s life. Obviously, it is one’s hope that these costs will only rock the boat, not sink it. However, sometimes there are cases in which it is completely unavoidable to use all saved funds to get out of a hard situation. Even though you cannot foresee these instances, there are ways to avoid having them completely wipe you out. Besides retirement funds, start saving for an emergency fund. This may seem intuitive, but there are many families that do not have funds readily available in case of emergency. Budget the money that goes to your savings every month and do not put all of it in one place. Allot appropriate amounts of money to retirement and emergency funds, as well as other savings accounts you wish to have. This way, even when tragedy strikes, you have many ways to combat the situation and can possibly come out financially secure.