Your youth is full of various life changing experiences. It is the time when you have to apply all those things that you have learnt earlier. The most important thing is that, this is the time when your financial decisions can either make you or destroy you in the future. For this, you should know what you want from your life. Once you identify it, you know very well, what to give importance and what to forgo. And for bringing all your dreams into reality, you need money. So, the mantra to a great and prosperous future is “Save money and avoid money mistakes”.
This is the time when you need a true advice so that your future is secure and you do not have to regret for even a second in your life. So, today in this article I am going to discuss what money mistakes to avoid in your Youth so that your future is secure and tension free.
Money Mistakes To Avoid in Your Youth
1. Not Contributing to Retirement in Early Period
One of the greatest mistake we made is not giving a single thought to our retirement. We have the notion that retirement is far away so why to think of it now? Instead, we try to achieve our short term financial goals such as getting a car or a house. However I will advice you to start saving for your retirement from today only. No matter you earn a very small portion, still save some for your retirement. Start saving for retirement when you are offered your first job.
2. Buying a car over your budget
When you go to a car showroom to buy a car, the car dealers try to persuade you to buy the car which is of the latest model and is over the budget for you. You buy it and land yourself under the burden of payinghuge loans. But if we see the reality, we hardly need a car. We know that we can use the public transport which is cheaper and does the same work. However just that other people have car and to show our status we land on buying a car. This results in increasing the financial burden on our shoulder. So, if you want to buy a car, buy which fits your budget and only if it is necessary for you.
3. Delaying in starting emergency fund or not starting it at all
One of the money mistakes to avoid that we made is that we do not make any effort to start a emergency fund or delay it. However this is the first thing that you need to do after paying for the basic needs. So, it is good to keep a sufficient amount so that you can meet your your life’s emergencies.
4. Do not rely solely on Credit Cards
If you have not gotten yourself into debt, thank your god and try to avoid this devil plague. Depending highly upon the credit card is not healthy for your financial performance. Because at some point of time you have to pay for those expenses. This is the time when your all savings will run out to pay for the expenses. If your savings are already exhausted, then you will miss payments and ultimately it will lead to heap of debts for you in upcoming future.
5. Difficulty in setting Financial Goals
If you do not know what you want in your life or in upcoming 10 to 20 years, you won’t be able to accomplish anything in your life. It is very important that you know your financial goals. If you know your financial goals clearly, you will make efforts to achieve them.
6. Keeping up with your peers
Well, in our life we find that one of our friend is doing great and has become a quite rich and reputed person. So, in order to be in that same place, the pressure of doing something increases and it lands you upon nowhere. It is very important that you act sensibly and set your own financial goals instead of going for other people’s financial goals.
7. Not Paying Yourself First
Well, the human tendency is when we get money we try to repay our debts or liabilities first. Instead we should pay ourselves first that is we should save first for ourselves and then pay off our debts, then only you would be able to create wealth.
8. Taking Student Loan without knowing your Career Prospectus
Well, people say follow your passion and you will end up succeeding. Is it true? It could be in some cases but following your passion doesn’t pay you. When you are taking student loan, you should know where you want to pursue in your career. If you do not know, then it will become difficult to repay your student loan.
9. Trusting others to pay your finances
No one cares about your money you do. If you don’t know how to manage your money, then its time to learn it now. The advice you receive from others always involves their interest more than yours. So, learn about how you manage your money so that you can protect yourself.
10. Never take debt for your wedding
Do you want that your wedding memories last for life time. Then never take debt for your wedding. Instead, save for your wedding day by day. Why to go for expensive wedding? It is written somewhere that expensive wedding are more successful. No, then spend according to your budget and have a happy and memorable wedding.