5 finance related mistakes to avoid in your '20s

olamide olarewaju

September 11, 2017 1:16 PM

To avoid financial troubles in the future, here are some money mistakes to stop making in your 20’s...

As you grow older, so does financial responsibilities accummulate.

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. 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

2. Not having an emergency fund

Unexpected expenses may arise at any time. They would surely arise There must be a provision for such occurence. Failure to prepare for emergencies can get you deeper in debts.

To start an emergency fund, a certain amount should be put in an entirely different savings account daily or monthly as the case maybe. When you are broke, an emergency fund gives you something to fall back on until you bounce back.

3. 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.

When you get paid, take some out for savings.

4. Living beyond your means

The mainstream and social media are constantly in the face of people showing them the extravagant lifestyle, which many followers are trying to keep of with the standard, especially the youth, creating an aura of affluence around which in they can't afford. This is a money mistake a lot of people make which must be to be avoided. It is very essential living within your means because it helps manage your finances.

5. No retirement plan

You are not too young to have a 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.

olamide olarewaju