Here’s Suze Orman’s list of five money mistakes to avoid - targeted at men this time:
1. Funding early retirement with a home equity line of credit.
2. Not paying off the mortgage early.
3. Neglecting to make a will.
4. Refusing to take the investing long view.
5. Assuming the role of the family’s sole money manager.
Here’s my thoughts on each:
1. Fantastic tip - people use home equity lines of credit like a giant, bottomless piggy bank. Remember, you have to pay this money back at some point in time, and the interest rates aren’t altogether fantastic. There’s certainly no good reason to fund your retirement with it.
2. If you’re in a position to do so, a 15 year mortgage is a much better choice than a 30 year. Barring that, if you must go the 30 year route, pay an extra $20 or $30 each month, if that’s what you can swing. Any time you get a bonus from work, use a large portion of it on your mortgage. It will pay for itself many times over. Who wants to worry about making a big, fat house note when they’re retired?
3. If you die, who gets your assets? You don’t want them falling to the wrong people, so take the time to establish a detailed will.
4. Invest and sit back for the most part. Micromanaging your investments isn’t likely to earn you more money in the long run. In fact, it’s likely to earn you less. Leave it alone.
5. As a married couple, both of you should be on the same page financially. Granted, one person is likely to take the lead ( often the husband ), but the wife should be involved too - remembers, it’s both of your money.