6 Mid-Career Money Myths

Myth 5: I'm healthy and in the prime of my life, I don't need life insurance.

Life insurance isn't for you, it's for your loved ones. Buying insurance often depends on whether you have financial obligations you want covered after you're gone. For young people term life insurance is inexpensive and will help cover funeral expenses and pay off debts.

This is also a good option for single people to cover the basics. As it sounds, it's purchased for a specific time period so when it ends, you need another policy.

Mid-career workers should consider a permanent policy such as a universal life or whole life policy, which allows the buyer to continue to pay premiums to keep the policy in force on a continual basis.

It's critical for someone starting a family to seek coverage that could help the family survive the loss of a breadwinner. An insurance needs calculator is provided by the American Institute of Certified Public Accountants online. Be sure to purchase from a company with a solid financial strength rating. You can review ratings at Insure.com.

Myth 6: I just bought a huge commercial-kitchen jar of Grey Poupon. Buying in bulk is always a good strategy.

It's estimated that most people only consume 12 ounces of mustard per year. So you may have just stocked up on more than a decade's worth unless you're hosting a major picnic.

Buying in bulk, taking advantage of sales, and using coupons is a good savings strategy if you're actually purchasing items that you need and would have purchased anyway.

It doesn't make sense to spend a lot on gas to cash in on a small coupon. A good deal on a perishable item isn't so good if half of it spoils.

"Don't buy things that you otherwise wouldn't normally buy just because you think you can get a deal on it," says Neal Ringquist, president of Advisor Software Inc., which runs Goalgami.com, a personal finance website.

With smartphones and ubiquitous daily deal email offers, the temptation to spend is all around. So be cautious about buying into promotions like those on Groupon or Living Social as impulse purchases.

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