4 Financial Mistakes to Avoid in 2020
The start of a new year is a great time to take stock of your financial situation, and perhaps find ways to improve on it. Some of that will mean actively doing more things right, but it also means avoiding the sorts of mistakes that can ruin your best efforts. Here are a few major financial blunders everyone should steer clear of in 2020.
You never know when your home's heating system might malfunction, your car's engine might fail, or you might land in the hospital with an expensive medical bill. But while the specific "unexpected" expense that will befall your household may not be predictable, what you can know for sure is that costly problems come along for everyone eventually. And if you don't have some money in the bank when they do, you'll likely have to rack up some debt to cover the bills.
That's why it's crucial to have an emergency savings fund -- money set aside for life's unknowns. Ideally, it should contain enough to cover three to six months of your essential living expenses, so if yours isn't close to that size, make boosting that cash reserve your first financial priority of the new year. Otherwise, you may wind up closing out 2020 with a pile of new debt -- and a mountain of stress.
Source Fool.com
