by Semify
Life can go by very fast once you get to your early 20s, but this does not make it okay to fail at money management. You have your whole life ahead of you, and you should take measures to make sure that you don’t end up in dire straits when you get older. Read on to see five of the financial mistakes that you need to avoid in your late 20s if you want to have the prospect of a bright future.
1. Spending More Money Than You Make
While you may feel as though you can make as much as you need to keep up with an expensive lifestyle, it’s important to spend your money with a plan. Don’t try to maintain a lifestyle that’s out of your comfortable reach from a financial viewpoint. This is because the moment you get used to a lifestyle that you cannot sustain comfortably, you will spend years of your life playing catchup. Sooner or later, this will get exhausting and you will find that you don’t have a lot to show for your hard work. This includes, for example, owning a timeshare. Around 66% of all timeshare owners in 2016 said that they wanted to cancel a timeshare because the fees for maintenance were too expensive. Set up worthwhile investments that you have researched thoroughly to avoid falling into a similar trap.
2. Failing to Set Financial Goals
Financial goals don’t have to be lofty for them to work. In fact, the smaller you start, the better. This is because you will have an easier time saving up for them and you will get motivated to keep planning. This can help you live a life of purpose that’s driven by results because you will be confident in your plans to achieve the goals that you set. As you grow older, this is something that you will be glad you took the time to do.
3. Not Finding a Job That Doesn’t Drain You
As every adult of working age probably knows, a job is practically the spine of a successful future. With this in mind, you should make sure to find a job in your 20s that will meet your needs without breaking you. Take time to set a foundation in a career or job that you know you will be able to enjoy doing years down the line. While you may go out to look for greener pastures eventually, you need to know that you are comfortable enough in your job to be okay if you have to do it for the rest of your life. This is the best thing that you can do for your mental health. If you put in the work, you can find a great job given that, globally, the workforce is made up of 70% of passive talent. These ones are not actively looking for a job, while the remaining 30% are actively looking for a job.
4. Failing to Set up an Emergency Fund
Emergency funds exist for a reason, and that is to help meet an emergency need without upsetting the quality of life of a given individual or even family. Set up an emergency fund in your 20s to make sure that you are financially at an advantage no matter how things go.
5. Not Pursuing Advanced Degrees Strategically
Finally, while pursuing higher education is always a good idea, you need to do it strategically. Enroll in courses that will further your chosen career so that you don’t end up building a large amount of student debt that will not pay for itself. For instance, the IT industry is currently big, with enterprises spending $4 trillion this year alone on services and products in IT.
Avoid making these five financial mistakes in your late 20s. You may have a good chance to succeed at money management both now and in the future.
So, what do you think ?