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Top 10 worst financial habits

By Jennie L. Phipps · Bankrate.com
Wednesday, December 26, 2012
Posted: 4 pm ET

Have you set retirement planning goals for 2013?

If your answer is "no," then join the club. Some 84 percent of Americans surveyed by Allianz Life Insurance Co. said they had not included any financial resolutions among their goals for the new year.

Allianz also asked people 55 and older to identify their worst financial habits. More than one-third -- 37 percent -- replied that they had no bad financial habits. I have my doubts they were telling the truth. The list that the other two-thirds confessed sounds too familiar.

Here are the top 10. Do you recognize yourself?

  1. I spend too much money on things I don't need: 20 percent.
  2. I'm not saving any money: 23 percent.
  3. I'm saving some money, but not as much as I could: 20 percent.
  4. I don't have a household budget: 15 percent.
  5. I spend more money than I make: 13 percent.
  6. I'm not educating myself about retirement finances: 12 percent.
  7. I only make the minimum payment on credit cards: 8 percent.
  8. I can't resist gambling -- or at least playing the lottery: 10 percent.
  9. I haven't pursued professional financial help planning retirement: 8 percent.
  10. I'm not contributing to my employer-sponsored retirement plan (401(k) or 403(b)/457): 4 percent.

Katie Libbe, vice president of Consumer Insights for Allianz Life, says she believes that the number of people who spend too much money on things that they don't need -- often at the expense of retirement savings -- is much higher than 20 percent. "You could probably ask anybody, and they'd tell you they spend money on things they don't need," she says.

What surprises her is the number of people who say they aren't saving any money at all. She attributes this to a lack of financial discipline over a lifetime and says the price for many of these boomers will be a pinched retirement. "If you spend all your  money on your short-term goals, you are going to be out of luck on your long-term goals," she cautions.

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13 Comments
tom
January 15, 2013 at 8:24 pm

My advise is to find a job that pays $50,000 p/yr especially if you have a family.

Ruth
January 05, 2013 at 10:39 am

Most of my professional life I have contributed to 401K without really paying attention to it. Four years ago, I started watching my money and investments. They say what you pay attention to happens. Well.....as I get closer to retirement the discipline feels good. I know what I have and don't have. Bankrate.com has been bookmarked and become one of my resources for investing. It is never too late to start.

ED P
December 29, 2012 at 4:00 pm

I do not know about the rest of you as I am retired. But when I was working, i put money i 401K , which I do not touch, have pension and social security to live on. But when i WAS working , I also lived hand to mouth, had credit cards, and still managed to put a little in the sock.