Common Money Mistakes In 20's
So, money mistakes experienced from people of different age groups are out-rightly similar. The only difference is the financial maturity that comes after a lot of experiences, good or bad. So here are some money mistakes you should avoid especially in your 20s in order to save better.
1. Not Saving At All
Maybe it is a savings account or a piggy bank, saving is very important. Not saving is one of the many financial mistakes-turned habits that we have as young adults. We would most times make an excuse of insufficient funds only to end up with nothing by the end of the year. Very few realize that the quote “a little drop of water makes a mighty ocean” is also reflective in finance. For instance, it is better to save 20 Euros a month and end up with a sum of 240 Euros at the end of the year than saving nothing at all.
2. Failure To Track Spending
I used to fall into the trap where I would ignore my spendings under 5 Euros or 10 Euros, tagging them as “chop money” as well as ignoring money spent on clothing items tagging them as “monthly gifts”. Well, doing this did not help me in any way as I was clueless regarding where my money went at the end of every month. I realized the hard way that I had to make a conscious effort to track my spending and this has helped a whole lot.
3. Not Buying Quality
It took me a long while to realize that just because I was buying cheap did not mean I was saving. I sincerely thought the contrary, but I was wrong. We lose more when we buy cheap especially in clothing items, accessories and the likes because the cheaper they are, the quicker they fade and the more often you will need to replace which eventually leads to unnecessary spending. So, buying quality even though expensive will serve its value and worth in the long run.
4. No Emergency Fund
The importance of an emergency fund can honestly not be over emphasized. People most times always lean on friends and family in times of trouble, but what happens when they don’t have to give? This is why it is important to have an emergency fund of your own; enough that you can rely on and trust in yourself.
5. Ignoring Your Money Relationship
Many of us are not aware of the relationship we have with money. Not being aware of this is a sharp knife to your savings and budgeting. This is because everything you build and save up will be lost if there is no relationship awareness, being aware helps you plan a suitable and surviving technique that will help you save better and efficiently. It is my hope that one or all of these will be able to help you determine what money issues you have and the right steps to take.
DISCLAIMER: I am not a financial advisor, I am only sharing financial ideas, tips and tricks that have helped me so far. Stay blessed!