One of the biggest mistakes that you are making if you are in your twenties is having debt. You are new to the world of salaries, bills, and responsibilities and already you owe money. Debts will hold you back. If you have debt you can’t save up, you can’t invest, and you can’t afford to be comfortable.
The allure of credit cards is that you get to pay for something at a later time. However, with the convenience of simply swiping a card, credit cards give you a false sense of financial security. You lose control of your money because you keep thinking that you have more. You don’t actually feel the money leaving your pocket so you think it’s deep pocket. That is not the case.
Credit cards should only be used when necessary or else you might find yourself drowning in debt even before you have achieved financial stability.
You’re young and just starting life. It is understandable that you have no savings yet. However, still having none after a few months in your new job is one of the biggest money mistakes you can make. Saving up is the first step towards financial stability. If you have savings, you can plan your life according to your goals and be ready for any emergency expenditures. You can get what you want in life comfortably and with peace of mind.
Saving up should be one of your main activity every time you receive a salary. Having a life savings is essential for your financial stability as it covers emergency expenses and long-term financial goals such as buying a house, a car, or a new gadget. Life Savings ensures that you and your next of kin are spared from the harsh reality of having no money.
Here’s a great tip for you: invest in an insurance. Yes, you are young, you’re healthy, and you’re near to invincible. But know that only one thing is certain: everything is uncertain. Accidents and death are unfortunate but it is the truth. It is part of our everyday lives. No one is certain when they will meet an unfortunate accident and it is best to have insurance for these accidents. It can be for helping you recover or pay for the expenses of your hospitalization or compensate your next of kin for any loss.
People in their twenty somethings often settle for the first job that accepts them versus the job that they truly want. This is perfectly normal because, more often than not, people need the money as soon as possible. Another reason is that it is hard to find a high paying job with no experience. This is fine. However, staying in the job and settling for something you don’t want and pays just enough is not recommendable. You can reason out that changing jobs is difficult and it is but the courage to better yourself is the difference between the winners and the losers.
If you have a bad job where you do not experience personal growth, don’t improve your skills, and don’t have compensation and benefits that satisfy you, then you need to leave immediately.
4) Not Having Financial Goals
You have your savings, you have no debt, and you are financially secure. Now what? One of the biggest mistakes to commit is to not to have financial goals. You have to plan out what you want to do with your money. Budgeting and financial planning is essential so that you know what you want to do with your money because after all, what’s the point of saving up if you don’t use them. Money was made to be spent.