The way you treat money during your 20s can have a significant impact on your future. By now you have probably read Money mistakes people make in their late 20s: Part 1 Here is the second part of common money mistakes people make in their late 20s
Money mistakes people make in their late 20s
5. Assuming you will be richer in the future
Spending carelessly today like tomorrow you will win the lottery and become instant millionaire, living on credits to satisfy your wants and assuming you will have money next month to start paying off and all that with absolutely no proper planning. Be wise on how you spend and invest the little money you have today because no one knows what tomorrow holds or even if you will still make the kind of money you have today.
4. Overspending on house expenses
I have personally never understood people who rush to find their own apartment spending more than 40% of their income in paying rent. Feeling the need to live in a certain area just because it’s trendy and young rich professionals live there. It’s important to stop overspending in area of our lives where we really don’t have to. Think about it, do you really need those extra rooms if you live alone? Do you really need to live in that area? Do you really need to have your own apartment?
3. Putting all your eggs in one basket
Relying on only one source of income is another mistake people in their late 20s make. Investing in one thing only because that’s what is trending, that’s what everyone is doing. This can be dangerous because you can wake up one day and lose everything. Many people fall into the trap of treating employment like a life long commitment, pouring all our time and efforts into one thing and not investing much into creating another source of income. Having more source of income can help you live more peacefully and broaden your horizons. If you find yourself out of your primary job you will still have an income. More source of income means more money to invest and save for future projects.
2. Lay buying: buying non essential items on credit
Another mistake many fall into without proper planning. Buying dresses on credit, suits, watches, designer bags, latest sunglasses and other non essential things you can live without. The funny thing is it’s really a trap once you start buying things on credit, it’s hard to say no to yourself cause you know you can get it now and pay later. Don’t fail for those marketing campaigns. Imagine being 35 and still paying off clothes and shoes that don’t even fit anymore, really? Paying off those things? Come on. If you can’t afford it now, don’t buy it, wait until you can afford it or buy something cheaper.
1. Quitting your job without a plan
I mean, hello? What were you thinking about? With the current state of unemployment you quit a paying job with no plan? Come on. I get that on social media we see that often people announcing they have quit their job because they were not happy, wanted more challenge, rediscover themselves etc. But what those people often forget to highlight is they think about months or even years before, they saved up for at least the next 6 months to a year when they won’t be working. They start exploring opportunities or better job before officially quitting their unhappy job. There proper planning behind that. That’s why you see them quitting a sad job and a week later they start a new position or travel the world because they have planned it.
Quitting today and starting their own business and personal brand because they have planned it and been working on that before even thinking about quitting their jobs. If you want to quit your job which is your ONLY SOURCE OF INCOME think twice and start planning like an adult.
I am no financial advisor but those mistakes are common mistakes I have personally people around me making in their late 20s and even beyond. Remember that the choices you make today and habits you form now can affect the rest of your financial life.
Which mistakes are you never gonna make again?
Till next Sunday