All three of my siblings got married this year! Kinda crazy right! It’s been a bit of a busy year. But incredibly awesome!! Our family has pretty much doubled! So. Much. Fun!!
SO! Me being the oldest sibling and about to leave my 20’s, say what!!! I can’t help but think about all the things I wish I had done differently.
First years on your own, FREEDOM! Livin’ the college life! Late night runs to the drive thru. First years of marriage. Kids. A lot happens in your 20s! Which can make a statement on your bank account if you’re not careful!
Your 20s are a time in your life where you learn a lot about growing up and living on your own. Unfortunately, a lot of times those lessons are learned the hard way.
I am the type of person who loves to hear others advice. I don’t always take it but I definitely will learn from it. I hope that’s what these five financial cautions can offer you.
Even if you are a little past your 20s, maybe you can relate and have made these money mistakes when you were in your 20s. Are you making these mistakes even now that you are out of your 20s?
It’s never to late to change! Following these five guidelines to avoid money mistakes and they will help you no matter what your age is.
In an effort to help others avoid some money mistakes, that I may or may not have made myself, wink wink, I am sharing some money mistakes that everyone should watch out for.
But if you are in your 20s, take advantage of these warnings because the one thing you have on your side right now is t-i-m-e. Time.
5 Horrible Money Mistakes Made in Your 20s
This is a big one, right? Being in your 20s you are super excited about all the potential your life has. You see others who have their careers and all of the luxuries that have come as a result of their hard work.
But guess what, you haven’t done your time yet. You have to work before you get your reward.
Don’t fall into the trap of trying to “keep up with the Joneses”. Do not and I repeat, do not go into debt.
We have never had credit card debt but our student loan debt as followed us our entire marriage! We decided to take control of it, we researched how to do it on sites like https://www.creditfix.co.uk/debt-solutions/trust-deed/ for many endless nights and FINALLY, right before our ten year anniversary we will be debt free!
Don’t be like us, stay far away from debt. Work through school, it might take you a little longer to finish, but you truly will be far ahead when you graduate with ZERO DEBT!
2. Not Saving
No matter what your age, it is always a good idea to put some money into savings. Even if it is only $5 a month, do it! Put aside as much as you can. The biggest reason is that you cannot predict the future. Side note: if you can, then please message me!
There is no guarantee that you are going to get a job straight out of college and there is an innumerable amount of things that could happen to tank your finances. Health problems, car problems, housing problems are just a couple to give you an idea.
It was amazing the burden of stress that was lifted as soon as my husband and I were able build our first $1,000 emergency fund. The frequent car problems we were having all of the sudden didn’t seam like the end of the world.
3. No Budget
I know. Once you get your first “real” job it is going to feel like you won the lottery! You went from making close to zero dollars and paying for school to making a steady income. First I would say, after taking into consideration your bills for the month, take a small amount (maybe $100) and go celebrate.
Now that you got that out of your system, you need to sit down and make yourself a budget. You probably have some new expenses that you aren’t used to paying. Your gas expenses might be a little higher then they once were. And don’t forget about putting money away for your emergency fund and other savings goals.
Here are a few more articles you will like about keeping your personal finances on track:
7 Tips for Eating Healthy on a Budget
5 Tips for Planning a Vacation on a Budget
Really Life Plan to Buy a House in Two Years
How a Budget Can Strengthen Your Marriage
Spending ZERO Dollar Challenge
If you followed my previous piece of advice about setting a budget then this one should already be on your radar. Do not spend more than you make. It is kinda that simple to say but maybe a little harder to follow.
All you need to do is exercise a little self-discipline, stick to your budget, keep your end game in site, and live within your means.
5. Not Investing
This one came from one of my college finance teachers. I can still picture him standing at the front of the classroom begging us to use our money wisely and invest!
He said we (college students) had a jump on the game because of our age, because we had time on our side. When it comes to investing, time is a major piece to the puzzle.
There are many different avenues to take when investing and I am not going to tell you which one to take. But I know that you are smart. Start small and educate yourself before you make the investment.
Don’t ever use money that you need to live on to make an investment! An example would be if you can’t afford to make two mortgage payments, then don’t invest your money into an income property.
Set aside your investment money completely separate from your other money you need to live on. It’s the safest way to avoid making a horrible money mistake!
You can still have fun! If you manage your money wisely by following all of these tips you won’t have to live with heavy financial burdens hanging over your head! Keep your end goal in site. For a little extra motivation read this article on how you can still live on a budget and live happy! You can do this!
Copyright: <a href=’http://www.123rf.com/profile_maglara’>maglara / 123RF Stock Photo</a>