Financial affairs and your 20’s: When we talk about age of 20s, enthusiasm and energy come in mind. The 20s are the most important period of life. This is the time when people embrace new habits forever. No doubt, everyone takes life changing experiences and milestones in the age of 20. The decisions took in 20’s are going to affect whole life ahead.
Top 10 Things you should Avoid in your 20s – Be better with financial affairs
Like everything else, financial affairs are going to affect your 20s. It is great to have real concerns about financial issues. But still 20s means we are still so young. We may not able to think best and rational decisions. That’s why, we have composed this article. Here, we will tell you about the ten mistakes that you should never practice.
1- Don’t think about retirement:
You must be thinking, retirement is too far from 20s. Like most, you must be planning to full fill immediate needs. Such that, buying a motorbike or getting expensive gadget. No matter how much you earn in your 20s, you still need to think about retirement. It is better to start saving when you are young. This will reduce the saving pressure. Still, you will be able to buy the things you wanted. Obviously, it will take little longer. There is nothing wrong in thinking about the future.
2- Avoid getting more than One Car:
Trust me, no matter how much money you have. You only need one car for transportation. When you will start buying things which actually needed. Your life will take a successful turn. Today, car manufacturers compel youngsters to get more than one car. It will cost you really high. You may spend it somewhere really significant. Think about long run instead of immediate unnecessary pleasure.
3- Contribute To Emergency funds:
Youngsters mostly avoid saving for contingencies. Honestly, we don’t know what will happen the next moment. Any accident can be happened any time. I know, most of you will say why not pay immediate bills instead of emergency funds. But it is highly recommended to arrange an emergency funds. It will help in case of any unpredicted accident.
4- Stay Away From Credit Cards:
I mean it, stay away from credit cards! Credit card is like a plague for youngsters. You may live on credit cards, but you have to make the actual payment someday. And that someday will snatch every penny you have saved. To avoid such scenarios, get rid of any credit card you own.
5- Set Your Financial Goas:
Set targets for your own self. It means, you must decide what you want to achieve in the next five or ten years. If you have not set any goals, you may end with nothing at the end. When you set financial goals, it means you are taking mature decisions about life.
6- Avoid What People Say:
You must be living in pressure of becoming something similar to parents. That comparison can be done with anybody who is wealthier than you. Just take a deep breath and think for a second. Your parents are living better because they have spent years of saving to accumulate finance. Otherwise, you will set unrealistic targets which cannot be achieved in time. So, take financial decisions which are not too much risky. Do it for yourself and don’t think about what others say!
7- Save First, Pay Next:
To develop healthy saving habit, first save the money. Next pay the necessary bills. Usually, youngsters spend all of the earnings in either bills or fun. At the end, they have nothing in their hands. So, that’s why it is great to save the money first. This will help you with budgeting.
8- Take Rational Student Loans:
This is the huge mistake the students make all the time. First of all, pursue the career you want. Don’t think about anyone at this point. Career is going to help you in making your life. So, this should be your rational decision. Unlike most students, avoid taking loans for the uninteresting study field. At the end, you will have a degree that you don’t love.
9- Don’t Take Debt For Wedding:
Wedding memories are exceptional and life lasting. But don’t purchase those memories with the debt. You will only think about paying back the loan. That’s why, be happy in less instead of tremendous debt.
10- Your finance if your own responsibility:
First of all, don’t take debt. But if you really need it, pay back yourself, don’t expect anybody else to pay for you even if it is your parents! Another important thing, if you really require a finance, you should deal all matters yourself. Don’t trust anybody for financial affairs to avoid scams.
There is one amazing thing about 20s, you got plenty of time to build a career if you play fair with your financial affairs. Time is the biggest investment so invest your time in something productive! Always remember, it is not our fault how we born but it would be our fault if we won’t use our energies and die poor.
Be good with Financial Operations!