9 Money Traps To Avoid In Your 20s That Will Kill Your Future Wealth

Discover how to Unlock" your greatest success in business and in life each week as bestselling author and internationally renown business mentor Dan Lok shares his inspiring insights, interviews the world's most brilliant business minds, including influential celebrities, to inspire you to develop high income skills, create financial momentum, and unshakable confidence and help you to unlock your higher self. While your retirement might still be 20-30 years away, the right time to start working towards it is when you receive your first salary. Investing can help build your savings. If you have a habit of dipping into your savings when you shouldn't, move those funds to separate savings accounts so the funds won't be depleted when you need them.

Your life—and financial priorities—change in your 20s, 30s and 40s. I want to highlight important reasons why money habits and choices in your 20s are important if you are to enjoy wealth and financial freedom in the future. Though the average American aged 44 to 49 has a little over $81,000 socked away for the future, according to the Economic Policy Institute , there are plenty of 40-somethings with no savings at all.

Set up multiple savings accounts to start setting aside money for specific purchases. If instead of paying the EMI, you would have saved Rs 5,000 every month and earned a mere 6% interest (even some savings account give that much), you would have saved Rs 61,986 in 12 months.

If you don't already have life and long-term disability insurance, your forties can be a crucial time to protect your earning power. Consider getting rid of long-time Finance mindset under performing investments and redirect these funds elsewhere. Regardless of your plan, contribute what you can afford and bump up the amount as your income increases — adding a percent or two each time you get a raise — with a goal of setting 10% to 15% of your annual income aside for retirement.

Car owners in their 30s and 40s have the highest levels car debt, owing an average of $14,000, according to a report from the Housing Finance Policy Center The vehicles in your garage can be a big drain on your budget and eat up resources that would be put to better use elsewhere.

Your debt keeps you on a treadmill of paying off yesterday's expenses — plus interest — instead of getting ahead. Here are five money-mistakes to you shouldn't be making and the solution for a financially secure future. Whether you're talking about stocks and bonds, mutual funds, broker commissions or 401(k) retirement plan management fees, virtually all investments involve costs that investors should understand.