#6 – Inappropriate Amount of Savings
There are two ends to this spectrum. There are people who spend beyond their means, which means they have accumulated a lot of debt and probably aren’t in the position to save a lot, if any amount of money. On the other hand, there are people who have too much in cash reserves. If you have over $100,000 in savings, it’s time to consider putting it into investments such as property or a pension fund.
Most experts recommend that you should keep between three and six months of expenses in your savings, so that you can switch between jobs (for example), without taking on more debt.