25 Aug
25Aug

    There's so much to figure out between the ages of 20-29 for young individuals, and as you make the transition to independence and being a full adult, most times , subjects like money management, budgeting and saving are boring subjects to take action on and most probably not among the top priorities on your list. The school system also does a poor job of educating on this topics.

Your 20s are the decade and time when you should try and figure out your life, decide on your career, interest and passions, make mistakes and most importantly hopefully learn from the mistakes.

Here are some money mistakes to avoid at this time of your life.


1. Spending More Than you Make.

     Building wealth does not happen magically or by chance, it takes time and lots of effort, and a well known wealth building tip is "Living below your means" but this is often ignored. 

Spending more than you make happens a lot because of trying to keep up with peers, Learning and choosing to spend less will save you.

2. Not Having a Savings/Emergency fund.

     Life is unpredictable and anything can happen to anyone at any age. Unforeseen events like job loss, death of a loved one, accidents, sicknesses, car breakdowns and more can happen when you least expect. But having an emergency fund can protect you from stressful situations and anxiety.

3. Buying Luxuries.

     So, You finally landed  your dream job or hit some success in your business, The first thing on the list of most 20-something year olds is to upgrade or make a major financial purchase like: Buying a luxury car, designer clothes/items, and basically buy depreciating assets that will make you look wealthy. DON'T DO IT.

You should be investing in yourself, your education and buying real assets instead of trying to impress your friends and enemies. the time to accumulate luxuries will come, But Build your finances up first.

4. Not Taking Enough Risks.

     By risk, am talking about calculated risks, this time in your life is when you should be open to opportunities, learn new skills and try new things like starting a business, moving to a new city or country and so on. Take some risk now before you start having big responsibilities like kids, marriage and other situations where you no longer can.

5. Renting An Apartment Alone.

 There's no need to rush to independence. it's going to happen anyways whether you like it or not. But a few years with a roommate and splitting the rent and bills will help organize your finances.

6. Avoid Bad Debts/ Have Good Credit Score.

     Relying on credit cards to finance your lifestyle can quickly get out of control and lead you into a cycle of compounding interest and debt that may take years to pay back, you don't want to spend all your life paying back bad debts. Beware! 

Bad debt can be anything that does not help or improve your financial situation, like personal bank loans, credit cards. Focus on building good credit, make payments on time and have a spending limit (weekly, monthly).

7. Earn Extra Money In Your Free Time.

     Right now it seems like you have all the time and energy to party, hangout with friends, play video games and binge watch your favorite TV series and sports, All these are fun and very ok.

But also start a side hustle, Become an expert at something, learn to code, become a virtual assistant, the options are endless of things you could learn or create.

   Just look for ways to earn some extra money to support yourself, your goals and your family too. This will help you in the long run.


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