Most people spend more time planning their vacation than they do planning their financial future. To the extent most people have done any planning, it's typically been on a piecemeal basis, and usually they receive different advice from different people at different times, with none of them referring to what the others may have done. It's recommended on person act as coordinator and catalyst. No Systematic Investment Plan . One should try to save and invest ten percent or more of his or her gross income monthly.
Most people are about three months away from bankruptcy.
After setting aside three to six months' income in liquid assets or cash value as a cash cushion to fall back on, a fixed amount should be invested every month to take advantage of dollar cost averaging. At younger ages, this is often best accomplished using mutual funds or a variable annuity . At older ages fixed annuities often make a lot of sense. Mistake Three Insufficient Diversification . You shouldn't put all your eggs in one basket.