Common Money Mistakes People Wish TheyRealized In Their 20s

 Do you want to be financially secure? Many young
adults in their 20s make money mistakes through lack
of knowledge, which can result in debt and financial
insecurity.
It is important to get on top of your finances now –
check out 10 common money mistakes people wish
they realized in their 20s.

1. Spending to make
themselves feel happy
Many young adults who
spend too much money do
so because it temporarily
helps them to feel good,
but mixing money and
feelings can be dangerous.
Avoid going shopping if
you’re having a bad day –
the temporary fix from
emotional spending will
pass quickly, but actually
saving will
leave you
happier and
more fulfilled
in the long-
term.
2. Not having emergency savings
When you’re in your twenties, having enough money in
your bank to pay rent and buy food and a few drinks
can feel like more than enough.
However, planning for an emergency could really help
you later down the line – and if there isn’t an
emergency later on, you will have savings for a car, or
a little to help with the deposit on a house. Try to have
6 months of living expenses saved up as a safety net
for the future.
3. Choosing not to make investments
Investing may seem boring and confusing, but it can
really benefit your finances. If you do decide to make
investments, ask professionals for information and
advice.
A bad investment is a waste of money, but once you
have some tips and knowledge behind you, you could
make an investment that changes your life financially.
4. Being frugal and failing
Often young adults in bad financial situations commit
themselves 100% to getting out of debt and saving up,
leaving no money for anything extra. This can get very
dull very quickly, and can actually result in binges of
high spending.
This is no way to live; instead, factor in a small amount
of weekly money for fun. Make sure it is a small
amount, but you can spend it on whatever you want.
This is more likely to help you to save and pay off debt,
as you are far less likely to binge spend your money.
5. Moving out too soon
After a whole life of living at home, many young adults
can’t wait to move out and get their own place. While
this is fine for many people, it is worth considering
staying at home for a little longer as it is a great
opportunity to save lots of money.
Ask yourself; do I need to leave immediately, or could I
leave in 3 months? How much money do I want to save
up before I move out?
6. Not setting long term financial goals
Most people in their twenties have short term financial
goals, like paying their rent and bills. However, if you
can afford to set short term financial goals, it is likely
you can afford to set long term ones too. Decide how
much you want to save in a year, and start working
towards that.
One day, you may want to start a business or buy a
house – setting long term financial goals will make
these things possible.
7. Ignoring their employment benefits
If you work in a company, you are probably making
small monthly payments towards retirement and
healthcare. Many younger people see this as a
necessary evil, but it is much more beneficial to you
than the company you work for.
Take some time to look at the terms and agreements
surrounding these monthly payments, and see if you
could alter your payments to take advantage of any
extra financial benefits.
8. Staying in credit card debt
Credit card debt is one of the biggest financial issues
for young adults, with interest rates averaging around
16%. If you choose to make the minimum monthly
payment, you may be paying off your cards well into
your thirties, when you will have other expenses that
need paying.
It is difficult to save with debt, and even more so if
there is interest too, so try to focus on paying off your
credit card debt as soon as possible.
9. Choosing money over growth
Many young people take job offers with a good wage,
turning down positions with a lower income but much
more opportunity for growth.
It is important to choose growth over money; these
learning opportunities and chances for promotion are
invaluable, and it is likely you will end up with a much
better wage than the first job after a short amount of
time.
10. Spending too much on unnecessary extras
The new iPhone or expensive hair extensions; can you
really afford these costs on your current budget? It is
important to treat yourself to things you love, but it is
also important to sit down and work out if your
outgoing expenses are too high.
Before you buy a high-end, luxury product, ask
yourself these questions; can I really afford this? Do I
need this? Why do I want it?