Robert Taurosa: Financial Missteps
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Transcript of Robert Taurosa: Financial Missteps
It’s a common scenario, men and women in theirearly twenties entering the job market with little tono knowledge of personal finance. As a result,
these men and women are prone to making whatare avoidable mistakes, and then these misstepsproceed to affect said young professionals
throughout the rest of their career.
In light of such, I have elected to lay out what Ibelieve to be the most common of these mistakes,
so as to mitigate the negative repercussionsassociated with poorly managed personal finance
practices:
Being Hesitant to TakeResponsibility for your
Finances
It can be frustrating to many that, although making the leastamount of money they will (ideally) make in their career, they are
expected to begin saving money and acting responsiblyimmediately. This all said, there are two main takeaways here:
-Protect your income and don’t run up new debt (like creditcards, for example)
-Balance your finances; and don’t get upset if you haven’tdeveloped the fiscal discipline required to properly do so at first.Like anything else, practicing responsible personal finance takespractice and you are not expected to master it instantly. In fact,
there are many ‘well-adjusted’ adults who have yet to figure itout.
Not Having Disability Insurance
While not all insurance is relevant to youngprofessionals, disability insurance, on the
other hand, is nearly always a smartdecision. Believe it or not, suffering adisability that keeps you out of work
contributes to 62% of all personalbankruptcies. That said, a measly third of
Americans have disability insurance.Perhaps this immense irrationality is due to
ignorance, but it nonetheless indicates avital need for education regarding finance
and appropriate insurance.
Not Having Enough Life Insurance
Most people qualify for group insurance through someemployer benefit or another. However, this sort of coverage
very often does not provide the necessary coverage onerequires in the modern world. In reality, individual insurance
is often a better choice for most men and women.Furthermore, it generally costs much less than what peoplethink, and it doesn’t just evaporate when you change jobs.
Mistakes are inevitable. No one isperfect. You will make the wrongdecision, but that’s no reason to
mitigate a potentially wrongdecision’s consequences. Strive for
the best, and although you willcertainly misstep here and there,you will be in a far better place if
you begin taking responsibility foryour finances early on in your
career.