Things are getting a little overwhelming. Your plate’s full. A large helping of responsibility is not necessarily what you ordered.
It’s not all fun and games. It’s pretty intimidating. You might just be thinking…
Perhaps, the WORST THING you can ever do is become an adult.
Mom and dad are no longer issuing out allowances. Finally, you’re completely in charge of the comings and goings of your piggy bank, and well…
It’s stressful, (to say the least)
When in your 20’s, it’s easily conceived that long-term financial plans aren’t nearly as important as the now. All that matters are the weekend “turn-ups”, right?
Decisions you once thought to be so difficult to make such as splurging at the ice-cream truck or saving for what’s new on the toy aisle seem like a walk in the park. You’re now plagued with deciding whether it's more important to have food or wifi.
Contrary to popular belief, in your 20’s you’re NOT supposed to have it all together.
So, Don’t fret. :)
Once you learn a little about money management, life will start to get easier. Trust me. Here are a few things to avoid doing, to ensure a successful financial future.
1) Failing to Plan for Tomorrow
Sure, you should live for today as long as you plan for tomorrow. Although it’s not promised, you wouldn’t want it to catch you with your pants down. Benjamin Franklin said it best, “if you fail to plan, you plan to fail” Frankly, planning for your financial future sounds pretty boring but if you ever want to get ahead in life I think a little boredom now is a fair trade for future financial success. The goals you should set out should outline plans for things like home ownership, retirement, maybe even a new business venture.
2) Not Budgeting
Don’t worry. A budget is meant to keep you on track, not cut out all the fun. When you’re tempted to live beyond your means you incur debt and a budget works to prevent this from happening. When you’re ready to create a budget, look at your monthly income and expenditures and you’ll be able to come up with a well-planned budget. Once you have this monthly guideline you’ll also get a clear take on how much you can set aside for emergencies.
3) Getting Behind on Your Payments
A huge mistake! The late fees will start to incur and bills that remain unpaid for too long make their way over to collection agencies. The agencies tend to report to credit bureaus and that’s detrimental to your credit score. To make matters worse, even after you pay up collections like to stick around on your credit report for seven years! Talk about being a leech, Geez! Start setting up automatic payments to avoid getting behind on your payments.
4) Settling for Less
You’re in a business meeting and it’s time to discuss compensation. Boom! There it is. Hello there, Awkward Elephant! It’s always easier to accept what’s offered instead of demanding what’s deserved. Stop settling. Sure, it may be an uncomfortable conversation but know your worth.
5) “Keeping Up With the Joneses”
A large percentage of our time is spent on social media and being the impressionable people that we are we find ourselves striving to obtain the lifestyles of those on our timelines. We start purchasing things we can’t afford in hopes of social status equivalency. The pressure to fit in sometimes works against our better judgment. The amount of money you have doesn’t determine your worth.
6) Not Paying Yourself First
Better start saving your coins. Paying yourself first allows you to organize your financial priorities? You should start by looking into split direct deposit; have a portion of your paycheck immediately separated and sent to your savings.
7) Blindly Taking on Student Loans
You have to do your homework before you even make it to class. Dig into your career outlook and take note. Search for your expected salary and determine if it aligns with your financial goals. If you don’t look into this now you’ll more than likely have difficulty with student loan repayment.
8) Falling Into The Credit Card Trap
Avoid credit card debt at all costs. It costs! Steer clear of large credit card balances. (They’re of the devil!) Interest rates are ridiculous and you’ll end up burying yourself deeper and deeper if you’re not careful. Try looking into secured credit cards if you aren’t approved for credit cards with low interest rates and good rewards the from the jump. Note: Applying for too many credit cards at once can take a toll on your credit score.
Now that I’ve given you a little insight., what will it be? Young and wise or 20-something and struggling? The choice is completely yours.