Your 20s are the years you’ll be spending establishing yourself in your given field. This is where you’ll learn all the tools of the trade and learn how to handle your income. When it comes to money and expenses. Some things could set you back for decades.
CHR Investor’s here to make sure you don’t make those mistakes.
Here are four money mistakes to avoid in your 20s and 30s.
1. Not contributing to your retirement:
Obviously, it’ll be decades before you retire but you never know what can happen, as you get older each year. Times change and things can fall apart, so if you’re not prepared to face the future, you might as well fail with everyone else. Here’s where you get ahead and make a stand. Save for your future and start saving up.
2. Not starting an emergency fund:
Always have a backup stash prepared. You never know if you can get into an accident, or if you’re a relative needs money to pay the hospital bills. Having an emergency fund is a safeguard for whatever unexpected event that can happen. If you have extra cash, try investing in insurance or put up another bank account to keep you from spending your emergency money.
3. Relying on credit cards:
The worst thing about credit cards is that they make you feel secure. They give the illusion that you can spend on anything because you don’t have to pay for it yet. Unfortunately, a lot of people make this mistake and find themselves under an enormous pile of debt. Credit cards are useful in emergency situations, but if you want to buy something, make sure you already have the cash, or enough money set aside to pay for that monthly bill.
4. Failing to set financial goals:
Where do you want to be in the next five years? How about in the next decade? The 20s are fun indeed because you have so much freedom to do anything you want, but those who fail to plan, plan to fail. If you want success later on in your life, you have to start today. It’s time to open a portfolio with your achievements and plans. Planning will give you an edge in this world of uncertainty.