Youth is a period of making merry, socialising, hanging out with friends, paying regular visits to cafes and bars, and most importantly the carefree attitude, for most of us. We live in the present and do not care much about our future, thinking we have ample time to do so.
There are very few people who care to start budgeting and to save for future, in their youth. They generally live happier and relaxed lives in their future lives.
We all make mistakes, and not saving and investing money in our initial years force us to borrow money, putting us under the debts. Our lives revolve around ways to meet the, and we lose all the fun that life has to offer.
There are millennial money mistakes, but we are going to discuss some of them:
Failing to Plan: Young people live for today. They neglect the expenses they make every week to pubs, bars, cafes, parties, and many more. Our money is limited, so we must wisely decide where to spend and where to curtail it. We must balance our needs and wants and save money for emergencies and future use.
Leaning too much on Parents: Some parents are generous enough to provide with all the luxuries to their children, making them dependent on them for their lives. They do not teach them the ways to earn and manage their hard earned money.
Rushing to Pay-Off Student Loan Debt: It is natural trying to shed off debt as soon as possible, but people must balance their approach towards payment of loans. Ending up your obligations in 5 years will leave you with zero savings. A small mishap or an accident can put you back on borrowing money, so effective management of funds is necessary where you keep some amount aside for emergencies.
Giving-Up on a Chosen Career: People who do not get jobs in their fields end up working at unsatisfactory places. Unable to get a professional workforce in the early 20s put your earning potential at stake for a lifetime.
Not Building Credit: Not having a good credit history to your name often acts as a barrier when trying to get loans for housing, car, or any other use.
Postponing Saving for Retirement: It is a major concern as many of us do not think much about our retirement in our 20s and 30s. If we start late, we get less compound interest to reach our goals. It is wise to save at least 5% of our income for retirement.
Not Carrying Health Insurance: It is a common saying ‘Health is Wealth’. If we are healthy, we are in a better position to work and earn. We must try to invest in good health insurance plans and save ourselves from substantial hospital bills.
Rushing to Buy a Home: Owning a home must not be the impulsive decision. We need to wait for the right time and resources.
We’ve seen how mismanagement of money and unplanned decisions can ruin our present lives as well as our future.