Hey fellow millennial, could you be better with your money? Could you be saving more? Could you be doing more things that you love without having to worry about a price tag? We’re firm believers that building smart money habit in your 20’s is CRUCIAL for setting you up for success in the future.
So friend, don’t make these 6 mistakes with your money that can potentially harm future you.
#1 Budget? What Budget?
Oh, that really scary thing that tells me how much money I shouldn’t be spending? Yea, that thing.
I used to have a negative attitude towards budgeting. I hated knowing how much money I was spending on food (I still do). But what a budget DOES do, is it tells you where you PRIORITISE your money. And what wouldn’t you want to know that??
So, mistake number one … is not starting a budget or maintaining one.
#2 Nah, Investing is WAY Too Risky!
Pfft, get that thought out of your head right this second! Only those who have had a bad experience with investing will tell you it’s a bad idea.
When starting out, the key is to identify how risk averse you are, then you can decide on what types of investments suit you.
For example, let’s take myself. I’m pretty risk averse but I won’t cry over a bit of lost money. When I started, I invested in dividend growth stocks which puts free money into my bank twice a year. If you want to learn more about investing but don’t want to do the leg work, there are a few sites where you can pay an annual subscription and they will give you their buy or sell recommendations.
You’ve also got bonds, index funds, property and there’s even digital currency.
#3 Your Credit Card Is Not Your Best Friend
Terrible with money? You probably shouldn’t have a credit card then. But who am I to advise you of this … I used to have 2 credit cards.
I will my credit card for EVERY purchase if I can purely because it gives me points. And when I have enough points, I can cash that out for more money. The best way to manage your prepayments to your credit card is to set up automatic payments from your bank account.
Work out roughly how much you’re spending each week and set that as your prepayment. You’ll never get caught out with an overdue amount to pay!
#4 Stop Pretending You’re Rich
Otherwise known as ‘keeping up with Joneses’. Haven’t heard that saying before? I’m talking about living above your means.
PLEASE DON’T! It’s not worth it. I get it can be hard especially if you have friends who are more wealthy than you and always want to go out and spend money. Either be honest with them and tell them you can’t keep up with their extravagant lifestyle, or learn to say the word no … And actually commit.
Don’t buy things that you know you cannot afford. Even if that means you have to buy the shitty car. It’s not forever and your future self with thank you for it.
#5 Know Your Value When It Comes To Your Job
Not earning enough and think you’re worth more? You’re probably going to have to ask for it! Because once you start thinking about this, you won’t be able to get it out of your head … Believe me! If you’re in a job that underpays you and you think there’s something else out there, it might be time to look elsewhere.
Know your value when it come to your job and don’t settle. Earning more leads to saving more … Which leads to more holidays.
#6 It’s Not Cool To Just Pay The Minimum
…. On your debt that is. I know it’s tempting to save more, but the longer you have debt, the harder it will be on you. Pay it down asap and pay MORE than the minimum. Even if it’s just $20 more, every little bit counts.