6 The Worst Financial Mistakes that People Do in their 20’s
At 20’s this is the age where most people are in their final years in college. It is also a time when young people are learning to be adults. Some people are this age experience anxiety and pressure. This is a time that many young adults make poor decisions that can cause them in the rest of their lives. Here are some of the worst mistakes that people in their 20’s should avoid.
Not having financial goals
Setting a financial goal allows you to stick within your budget and you will focus on a target. Building financial security and wealth doesn’t happen automatically, much effort and time is needed. If you want to buy a house, buy furniture, save for retirement you’ll need to sit down and figure out how you will achieve it.
Beginning paying the wrong debts
When you are devoted to paying it may be hard to know where to begin. Financial expert recommend beginning paying bad debts with the highest rate. Bad debts are that outstanding balance or loans that don’t improve your financial situation it can include personal bank loans, credit cards and automobile loans. When paying debts you should begin with the one with the highest interest. At the age of 20, you will want to live like others who have succeeded in their careers and hard work. Don’t go debt, go at your pace
Not Saving an Emergency Fund
Emergencies can occur at any time and to any person. Saving an emergency fund will be worthwhile for any unexpected circumstances such as losing job. An emergency fund relieves you from stress and crippled debt. According to financial expert you should always have an emergency fund in the budget. It’s recommended to save at least three months’ salary or more.
Not using your free time to earn extra cash
You will have more energy and time to space. Instead of using your free time to watch movies, you can you it to get some extra cash. You can make a good income with a side hustle.
When borrowing money consider your monthly payment. Borrowing to invest can be good but when things go haywire you might lose it all.
Spending more than you’re earning
It is good to avoid overspending and learning to be contented with what you have. Sometimes we try to compete with others and we end up having piles up bills that we are unable to pay. Learn to spend less and save more especially if your income isn’t that much. This will enable you have a financial freedom which is more rewarding than trying to keep up with other people.
1. 7 Things to do to Overcome Depression
2.Janet Isaboke: Student Who Scored an A Gets Help from Leaders