5 financial mistakes to avoid in your 20s


Ruby Blog

Published 2 years ago

After passing teenagerhood, most people believe it is time for you to stand on your own feet and try to be more responsible for your own life. As you struggle to make money, there are a few mistakes that you must avoid to lose it.

1. Spending more money than you make

It is a simple math equation, your income MUST be greater than your spending so that your bank account number rises. So, stop wasting your money on unnecessary things and be more productive. You can start by buying items from stores with maximum discounts and cashback and also search for special offers on what you want.

2. Not starting to save money

As you make more, you should learn to save a decent part of it. Only this way you could buy things you dreamt about and travel to the places you have always wanted to visit. Remember some investments with low but secure profits can be used as savings, so you save and make at the same time.

3. Relying on parents

I don’t say to completely ignore your parents and go live somewhere else, but to reduce your dependence on them step by step. Start by taking less pocket money and paying for small things with your own earnings. You should consider accepting help from them anytime, because why not?

4. Living in a city that’s too expensive

I mean, it’s not completely a MISTAKE, but you know if it can be avoided so it should be. Big cities always come with more expensive prices including public transport tickets and takeaway foods. On the other hand, you can use bikes and bicycles in small towns and eat at your friendly local restaurant near your place and save money while doing so.

5. Pursuing an advanced degree without a plan

Biggest of them all! Run from this one for your life. Think about everything you can do with the time and energy you will have intact if you avoid studying for a higher degree. Try learning more suitable skills and putting them to work. And don’t worry if you made a small amount of money in your first couple of years, you’ll gain experience and connections which are more valuable than money itself.
As one of my former professors always used to say,” get to to work even if you had to pay to do so”.