Money Mistakes To Avoid In Your 20s
While your 20s can be one of the most exciting times in your life, it is often in our 20s that we are the most financially vulnerableand tend to make bad financial decisions. For many, the drawbacks of financial independence can be hard to cope with, and starting out on a career path can leave the pockets of many young adults feeling quite empty.
In this article, you will find the most common money mistakes to avoid so you can enjoy the most exciting time in your life without having to worry in the future.
The most common money mistake: not saving for the future
The independence that often comes with being in your 20s can be quite thrilling and it can be hard to look past the here and now. Indeed, today’s millennials are not known for planning ahead for the future.
One of the best and easiest things you can do to help invest in your future is to open up a savings account and start actually putting money in it. Even small change saved weekly can add up; and with higher interest than a traditional checking account every cent you put into your savings accountmatters!
Talk with your bank about the various savings account options available. Many in their 20s have little to no knowledge about the complex banking world and should take the time to research the best saving accounts in Canada.
We’ve all done it before: made an impulse purchase that leaves us with almost instant regret after leaving the store. Learning to curb ‘impulse shopping’ can be hard, especially with the omnipresence of online shopping.
Avoid spending unnecessary time in shopping malls, boutiques and online shops, as these places inherently lead to the worst kinds of impulse buying.
For many people, carrying around cash in their wallet can lead to overspending. Stick that extra cash in your savings account and switch over to card-based purchases for the majority of your day-to-day purchases (make sure to pay off your cards though!)
Credit card misuse
While carrying around cash can lead to increased spending, so too can the misuse of credit cards. Many people are in their 20s when they receive their first credit card, and learning to stay on top of payments can make or break a future credit score.
Learning what factors can negatively impact your credit score is important to make well-informed financial decisions. You may be surprised to find out that late payments are not the only thing that can bring your score down.Learn more about how other things such as credit inquiries can affect your credit here:http://aaacreditguide.com
Eating out all the time
People in their 20s are cooking their own meals less and less and spending more on restaurant food and take out. While it may be easier to simply pick up your phone and have your dinner delivered right to your door, a home cooked meal can save you a lot of money in the long run.
While meals made at home are also healthier, you need to know how to properly shop for groceries if you want your home cooked meals to help save your wallet. Look for promotional sales and coupon books.
Remember: quality food can be found at a reasonable price but you need to invest the time shopping around before finding the grocery store that best fits your budget. You can also find tons of money saving meal recipes online to give you an idea on what to buy.
While navigating life your 20s can be financially daunting, it is possible to avoid major money mistakes that can lead to even more frustrating situations in the future. Learning how to save more in your 20s will benefit you enormously in the future and help teach you how to build your wealth as an adult.