Financial mistakes when you are young
Published 12/20/2021
During youth, parents are often the ones who provide an income. For example, many youths receive it through an allowance.
Sometimes some young people need to earn an income from a young age. This situation can be to pay for their wishes or needs, even support at home. Even though they are young, many already have contact with money, and that is how they begin to create habits that will last a lifetime. This article will show some of the most common mistakes that young people have.
When we are young and beautiful, we believe that money is not so important, that we will be young forever. Of course, it is fantastic to travel, buy things and so on. You must know how to balance today's wishes without mortgaging future goals, and our youthful financial mistakes can be pretty expensive later on.
5 financial mistakes when we are young
1. Not having discipline in spending and saving
Even if you do not go into debt, overspending is still a problem. The more you spend, the less you can save for your other goals. Over the years, many people regret overspending in their twenties, wasting their earnings on trivial things like dining out, clubbing, or getting dressed.
2. Not having expense control.
It is super important to keep expenses controlled in a small notebook. Knowing how much money goes into your bag and how much money goes out will be easy to see whether you can buy more expensive things. In addition, you will be able to understand how much of what is left. Also, you will see how much you need to save to buy what you want. So, you will always have certainty of how much you can buy or spend. Even if the people around you see it as something weird, you will be avoiding the financial mistake of overspending. Numbers do not lie; they will always tell you the truth of whether you can afford some things.
3. Paying late for the cell phone or any minor credit
Delaying in the cell phone payment not only implies that your service will be suspended, but you cannot call your boyfriend or girlfriend. Paying late for this type of service can lead to denying us a mortgage or car loan in the future. For those who did not know, the payment of cell phone plans is recorded in your credit history, and if you missed it, the telephone company would report it to the credit bureaus. There are many cases of young people who do not receive larger loans due to the delay in small loans.
4. Live out of your income.
We live in an aspirational culture in which, above all, young people seek to give themselves a higher standard of living than they can afford. For this reason, young people are also called "dreamers." It is vital to put our feet on the ground and identify the difference between the lifestyle we want to give ourselves and what we can afford. Finding a middle ground between these is the best way to reward your work effort without this meaning living from day to day or, worse still, going into debt.
5. Swiping the credit card uncontrollably
Banks make it very easy for us. Many young people between 18 and 29 years old use this form of payment. Cards are not usually friends with savings since unconsciously, you are less aware of your expenses. In addition, there are a thousand and one ways that banks provide us with a simple credit card with which to pay when we do not have liquidity. What happens the following month? That you can see yourself in trouble. To the extent that they serve to meet current expenses such as food or basic household needs. If we talk about financing the balance available on the card in several months paying interests, it is a significant error. The trick is to pay as much as you can with the money you have.
The decisions you make when you are young have a significant impact on your financial future. If people spend their twenties on a rampant spending spree, max out their credit cards, and save nothing, they will enter middle age with nothing but some crazy memories and a ton of debt.
But if young people choose to balance reasonable spending with saving and investing, they can create happy memories and healthy finances at the same time. They can move on to bigger and better goals, like owning a home or starting a business, knowing that he has the money to accomplish them. And when they reach a mature age, they can look back on a life without regrets.
At El Paisa Multiservices we want to help you with your financial movements. You can contact us if you have questions about our services.
By Ingenuity & Solutions
