We’re all human. Most of us make mistakes with our money at one time or another. But here are four common mistakes that can have far-reaching effects on your ability to enjoy a comfortable retirement:
- Underestimating retirement costs. Fast-forward 20 years, and there will likely be a huge cohort of Baby Boomers feeling deep regret that they didn’t save more. The cost of living is not going to become magically less in 2034.
- Having no money set aside for emergencies. If you have a philosophy of spend today, save tomorrow, you may be very unhappy with your choices in the event of a major setback, such as a large medical bill or costly car repair. Everyone should have three to six months of living expenses in a savings account for the unexpected, including a job layoff.
- Spending too much. Ah, it’s so easy to spend and so hard to save! Sometimes it’s hard to remember that it’s not what you earn, it’s what you save. There are no shortage of examples of celebrities and sports stars who made millions but ended up broke because of lavish spending.
While it’s not a magic panacea, there is a another option to a plumper retirement account — one that is both fun and profitable. It’s wave watching. You probably remember your last time at the beach, even though it may have been a while since you dipped a toe into the salty waters. The waves we’re talking about have the same innate properties as oceanic waves, and can be analyzed in the same fashion from a scientific viewpoint.
When all those collective emotion-driven decisions by investors are aggregated, they become in essence a trackable, predictable aggregate sum in the form of valleys and peaks that gives an investor a true edge. Put wave science to work in your wealth-building strategy.