Money Saving Tips: 10 Money Mistakes Everyone Makes In Their 20s
Today i am gonna to share with you top 10 money saving tips
that works in your 20s. If I could go back in time and talk to myself at age pf 22 — oh, who am i kidding?
There was no getting through to that kid, Not to sound like an “old guy dishing out all my wise advice to the youngi’s” But if you can still avoid these common mistakes people make in their 20s, trust me, you’ll be doing yourself a big favor!
1. Trying to keep with the Joneses.
We all have at least one friend who’s constantly getting the getting and greatest. New Phone, Designer Cloths, Nice Car, Vacation around the world. and how do you feel? Like a jealous boring potato, But chances are those people are living their dream in debt up to their eyeballs. Don’t try to keep up with the cool kids if it means owing the bank a bunch of money plus interest.
2. Buying an expensive car.
I’m not saying you shouldn’t buy a car at all, but this is a balancing act. Most young people want to cool brands that all the celebs are driving, But you know what, That G-wagon isn’t just going to put you in debilitating debt. Prices for repairs and maitenance will also be through the roof. That said, don’t go years throwing money in your old high school clunker. Now when it’s time to upgrade but be reasonable about your budget and lifestyle. I mean, do you really need 500 horsepower to go buy groceries or sit in traffic?
3. Over Spending on Rent
Remember the one golden financial rule, don’t spend more than 30% of your income after taxes on rent. In fact, split your income 50-20-30. That means 50% goes to rent, food and transportation all togher, 20% goes to saving and 30% on what you enjoy. Also, don’t start fancying your first apartment with pinterest inspired remodels. Save that for when you own and that time will likely come a little later.
4. Moving to the big city
Unless you’re doing it for an awesome well-paid job you’ve been offered, think twice before heading to major city. They do have round the clock entertainment, shopping and entertainment and endless cultural events. So are you sure you can afford all that at the moment? You might not have been enough left for the fun stuff after you pay for your rent, bills and groceries.
5. Overspending on food.
When you finally move out of your folks house and you don’t have your parents cooking for you every day, it’s too tempting to eat out and order delivery for each meal. Fast food might seem cheap but when you compare it to cooking at home and packing leftovers to work for lunch, it’s a waste. Also take full advantage of coupons and deals on groceries and look at the price tags! Seriously , a lot of young people just grab what they need and head to the check out lines. and it is top at the head of Money Saving Tips.
6. Diving Head-First Into Credit Cards
Your parents might tell you it’s a good way to build your credit but that’s only if you’re responsible with that magic plastic card. If it’s too tempating for yo to swipe the credit card on luxury stuffs you don’t even need or if you can’t afford to make the monthly payments, hold off on diving into the credit world. It’s best to wait until you’ve got a decent job and a reasonable head on your shoulders then get a card not make the payments on time and ruin your credit.
7. Not Planning for retirements.
Here’s a surprising fact most 20s somethings don’t consider, the sooner you start putting money into a retirement account, the more time this money will have to gather interest and grow into some serious cash for your golden years. Think about it, if you start saving retirement money at 25, you’ll have 50% more than if you start at 35! It’s a good idea to put aside 10-15% of your income just for your retirement plan. Yes, even when you’re in your 20s and retirement is many years away!
8. Ignoring Insurance
When you’re young and full of energy, you feel untouchable. Unfortunately, no one in this world is 100% safe from any troubles, distasters or illnesses. Renter’s insurance will save you tons of money in case of a fire, flood or break-in. Medical Insurance is a must for emergencies that can otherwise cost thousand of rupees. and it is top at the head of Money Saving Tips.
9. Avoid calculated risks
Yes, changing job is a risk, especially when you need money but if there’s skills you’ve always wanted to learn to it now. If you’ve always wanted to start your own small business try it. It’s always easier and wiser to do all those things before you’ll have to consider the needs of others like your partner or kids. Those calculated and well thought out risks are often worth it, both financially and life wise.
10. Getting pets
Hey, i love pets a much as the next guy! but they are expensive there’s no doubt about that. Food, toys, vaccines unforeseen vet trips (oh, that last one!), it you’re barely getting by taking care of yourself, how can you bring in a furry friend and afford all that stuffs?? Pets come with a whole slew of financial obligations, so only get one when you and your bank account are absolutely ready.
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