8 Financial Mistakes That You Should Avoid During Your 20’s
20’s is the age when a person is tempted much to go overboard and spend their earnings luxuriously. There are many finance related mistakes that you should avoid so as to lead a happy life in your later years.
1. Not having enough savings
According to 2015 Millennial Money Survey around 38 percent of people in the age group of 20’s were saving less than 50 percent of money they earned. This money usually goes in worthless activities like partying and travelling aimlessly.
Develop the habit of saving money from early days and you are sure to reap the benefits in later life.
2. Buy experiences instead of costly stuff
Investing in experiences is of much worth than spending money on useless stuff. Learn from the experiences of others who have bought costly things which lie as junk in later days. Instead spend your hard earned money with care and see the benefits it will bring to you.
3. Choose a college major with care
Pick a college major subject with due care. It is of no worth getting a costly paid subject combination and regretting later when you are unable to find a worthy job. Instead go for a subject which offers the guarantee of decent employment opportunities in your later professional life.
4. Not caring for an emergency fund
Emergencies and tough situations in life often come unannounced. If you do not care for having an emergency fund well in nick of time things can get difficult for you in the later years.
Develop the habit of saving from your 20’s so that you have an emergency fund to cater for any unfortunate turn of events.
5. Not learning to invest
Saving is important but learning how to invest is all the more important. It would be of no use if you invest the money in schemes that offer little return. Instead get in touch with someone who can offer you ample guidance on ways to invest the money and make the most of the surplus amount you have in hand.
6. Do not encourage the habit of being in debt
As far as possible avoid the instinct of being in debit. Plan your requirements in such a manner so that you do not require financial assistance from anyone. Repaying debt will always turn into a problem and you will most likely be in undue pressure all the while.
7. Having the wrong job
At times one does not understand the relevance of being in the wrong job. This has an impact on your financial earnings and you will most likely lose a substantial amount which otherwise you would have earned. Plan and choose a job wisely as it has a binding impact on how good you do in life.
8. Develop your financial literacy
Take time to develop your financial literacy. Enrol for a financial literacy awareness course as you will get to learn basics of facts and things which will help you become financially viable and strong in the long run.