Five Money Mistakes

According to "Five Money Mistakes to Avoid in Tight Times" by Russ Wiles of The Arizona Republic, one should avoid.

1. Neglecting retirement. Put money away in IRA's, and 401(k). Of course, easier to say then do, especially when you need evey penny, and are unemployed. But I used to work with the over 65 crowd, who didn't do this, or didn't do this adequately. Even if I work until I die, and never retire, I won't be surprised that this happened. Social Security is not enough to meet your needs.

2. Changing course. Invest for the long term, and diversify for the long term.

3. Switching debt priorities. Pay your home, and auto, and other secured debts first. Unpaid credit-card debs can result in judgments, and garnishment of wages, but if you don't pay your mortgage you loose your home, same with your car.

Don't pay your card, and skip your mortgage payment every other month thinking this strategy will work. It won't. Stop charging.

4. Listening to crooks. When in tough times people look for the quick fix, and are more open to scams. Con artists exploit this.

5. Drop insurance. Don't cancel health insurance. You can drop it, and then not be able to pick it up again due to underwriting concerns. In other words, health insurers are not obligated to insure you, but can't drop you unless you don't pay your premiums.

Don't drop car insurance either, or life insurance. If you die, your spouse needs money to bury you, and driving without car insurance is not only illegal, but financially risky. You don't want your house to be taken away from you in a lawsuit over a car accident.

Wise advice but easier said then done.