Having a sufficient amount of money is a great way to have security for your present and future. You tirelessly keep working day and night to get yourself some hard-earned money. However, as good as it is to have money, it’s equally vital that you save some of it every month and not make other common money mistakes.
The thing is, when we’re young, we tend to make a lot of mistakes – particularly with money. A part of us feels powerful, which leads us to believe we can do whatever we want with our money. Now, that may be true, but not necessarily wise. Here are a few money mistakes young people in their 20s make, they everyone should know about.
1. Don’t Overspend
Payday is the best day – we all know the feeling. But that doesn’t mean you should spend all your money with your eyes shut. You need to be careful with your expenses. We’re not asking you not to spend your money at all. You deserve to treat yourself with a few nice things after a whole month of working hard. However, don’t make purchases that you may not need. Having money doesn’t mean you’ll buy anything and everything.
2. Don’t Lend Unnecessarily
It’s great if you like to help people who are in need. But let’s get real – some people will always look for a way not to pay you back or delay paying you. What’s best for you is to know the difference between people who will respectfully pay you the amount on time and those who won’t. According to that list, know who you can trust to give money to. Also, sometimes people expect you to loan them money just because you have it. That logic is uncalled for as everyone has their set of expenses to cover. So, don’t unnecessarily be handing out cash to people.
3. Don’t Work with Friends
Now hang on; we’re not asking you to end your friendships. But it indeed is the bitter truth – mixing money with friendship is not the best idea. Everyone has a professional and a personal side. What if you don’t end up liking your “friend’s” professional one? What if you disagree on things when it comes to conducting business? Before things get sour and you risk your entire friendship, don’t indulge in something that can go awry in the first place. But, hey, we’re sure you know your friendships the best. If you think you won’t have a problem with doing any business with them, by all means, do what you think is best.
4. Credit Cards Are for Emergencies Only
The most important thing to keep in mind is that, as amazing as it is that you have your own credit card, it is for emergencies only. People in their 20s tend to spend money left, right, and center. You may get some leisure from spending too much currently. However, you’re going to regret not having saved any money for the future. Before it gets to that point, understand how crucial it is to save a certain proportion of your wealth as security for yourself. Remember to manage your cards and cash, and save some for emergencies. And no, planning a vacation with your friends isn’t an emergency.