Learning to manage finances at a young age is of utmost importance as failure to start will lead to financial problems in the nearest future.
To avoid financial troubles in the future, here are some money mistakes to stop making in your 20’s
1. Living above your means
To keep your finances in order, you’ve really got to live on less money than you make. That means you'll need to have a side hustle to increase your income or spend on items and services that are not above the line of your income. Whichever you choose, make sure you are not spending above your means.
2. No financial goal
Having a financial plan is important. You should set your priority straight when it comes to financial matters. Not having financial goals, short-term goals or long-term goals is a big money mistake. Set a standard you want to achieve with a time rate.
3. No retirement plan
It is a big mistake not to have a retirement plan. Saving for the future is always seen as a very big hurdle because it seems too far to start saving for old age while there is so much to spend money on now. A Higher value is placed on short-term than long-term goals, which is more important. The earlier you start saving, the less there is to save for old age.
4. Spending every dime
Do not spend all your income all at once. It is a very grave mistake to squander all your earnings. Poverty lurks around the corner, spending all the money you earn. You end up borrowing from family and friends even before you get your next income and when next you get paid, you have to keep settling debt and the cycle continues.
5. Not having an emergency fund
Unexpected expenses may arise at any time, and when it happens, there must be a financial provision to tackle it. Failure to prepare for emergencies can get you deeper in debts.