Worst Financial Planning Mistakes

* People fail to plan. Most people don’t plan to fail, they fail to plan.
* Don't put all your eggs in one basket. Diversify your 401(k) money. Don't put all of it into one stock, if that stock fails - like Enron or Worldcom - you could lose everything at once.
* Start a retirement plan immediately. Starting late is a big financial mistake. The rule of 72 tells us that at 7.2% money will double in value every 10 years. Waiting 10 years will cost you that last doubling period – that’s when $100,000 becomes $200,000 or $500,000 becomes $1,00,000.
* Don't count on Social Security unless you plan to be drawing it within the next five years.
* Too many people spend what they make, borrow as much as they can and plan to pay it all off later with cheaper dollars. You should do the opposite. Spend less than you make; build up an emergency account equal to 3 to 6 months of living expenses and then begin investing at least 10% of the rest in your retirement plan.
* Many people still adhere to the old investment philosophy which was to stay invested for the long haul – buy quality, then let it sit. The last 10 years have proven that wrong. Follow your investments and talk to your financial planner at least once a year to see if you need to make adjustments.

SOURCE

Ernst & Young's Personal Financial Planning Guide (Ernst and Young's Personal Financial Planning Guide)
The Complete Idiot's Guide to Success as a Personal Financial Planner
Get a Financial Life: Personal Finance In Your Twenties and Thirties
Private Wealth Management: The Complete Reference for the Personal Financial Planner
Personal Financial Planning