6 Money Mistakes You're Making in Your 20s (That You'll Regret Later)
6 Money Mistakes You're Making in Your 20s (That You'll Regret Later)
Blog Article
Your 20s are a mix of self-discovery, career building, and definitely financial chaos. While you are busy navigating life’s ups and downs, you might be unknowingly sabotaging your financial future.
Let us tell you something: The choices you make now can either set you up for success or create money headaches that will haunt you for years to come. Decide what you want in your future! And if you choose to set your finances right, read ahead!
When we have money, we start making mistakes!
-Jack Ma
Credit Card Swipes
Let’s talk credit cards. They are not free money, despite how tempting that sounds when you are eyeing those new sneakers or a weekend getaway. Many 20-somethings fall into the trap of swiping without a plan, accumulating high-interest debt that grows faster than their monthly income.
Pro tip: Treat your credit card like a debit card. If you can’t pay the full balance each month, you are living beyond your means. Build credit smartly by making small, manageable purchases and paying them off immediately.
Lifestyle Choices
You just landed a decent job, and suddenly, expensive brunches, designer clothes, and fancy cocktails become your new normal. That’s the start; you have just entered the world of lifestyle inflation, where your spending rises with your income, leaving zero room for savings.
Instead of upgrading everything the moment you get a raise, challenge yourself to maintain your current lifestyle and redirect that extra cash into investments or savings.
Procrastinating on Loan Payments
Student loans, car payments, and personal loans are not going to unexpectedly disappear if you ignore them. Delayed payments not only tank your credit score but also accumulate massive interest that makes your life harder down the line, the time when you have to sit back and relax.
Create a solid repayment strategy. Set up automatic payments, explore refinancing options, and prioritize high-interest debt. Make sure to keep your credit score clean.
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