We all make money mistakes. Not all of us can predict the future and foresee whether the steps we are making will lead to success. Sometimes our mistakes lead to failures and catastrophe.

1. Inability to Move Conservative Investments

A retired person cannot afford large negative swings in his savings. There are financial advisors who would recommend long-term strategies. They make us believe that we should leave money in the market despite the ups and downs. They explain it by giving examples of the timed when the market ended up rising. However they give examples of long-term rising, but retired people should focus on short-term results since at an older age a person might need the cash immediately. It’s fine if you are brave enough to keep some money in relatively aggressive growth investments, but you should always remember that you are no longer as young as 30 or 20 years ago. Ask your financial consultant to help you with the best decision and let him explain you how investments are diversified. What you need is to be protected. Do not chase after massive gains.

2. Spending a Lot of Cash too Soon

Keep in mind that the amount of money you are going to live on when you retire will be fixed. Some make a mistake thinking that the amount of their savings looks relatively large. The problem is that most people forget that the money they have is to be spent during a long period of time. If you spend too much money too soon, then you will find yourself in big trouble in a few years. Learn discipline and self-control. Refrain from making unnecessary and expensive purchases. Be strong enough and resist the temptation to waste your cash on something that you actually can live without.