The top 5 financial mistakes millennials have been making and how to avoid them

There is no doubt that the millennium is the most informed generation. The Internet provides them with much-needed information, including how to make personal money and wealth. However, in addition to being a source of information, the Internet can also be quite confusing and contradictory. The information available on the web comes from different people with different opinions.

So it is true that despite having so much information, there are still many thousands of years of people who are making money mistakes and digging themselves into holes that will take years to get out of.

Here are the 5 most common financial mistakes that millennials have been making and how to avoid them.

Student loan

Education is important in life and many millennials want to pursue expensive degree courses or attend prestigious universities. But, what many people don’t think is whether the course they are running will bring enough income to justify the expenses.

Before you take out a student loan, you need to keep the following in mind:

કેટલી How much do you expect to earn monthly?

How much do you have to pay monthly?

How long will it take you to pay off the debt?

Luxury lifestyle

We are living in an age of social media where people show off their “luxurious” lifestyle on Instagram and other social channels. Many millennials feel pressured to show up on social media and so they don’t spend money to impress people they don’t know and don’t care about.

Do you really need to spend $ 2,000 on a smartphone, expensive wedding, elegant lifestyle, drinks with friends, just take pictures and show off on social media? Use social media more and more for socializing with friends and family and for business and your life will never be the same again.

Waiting too long to start saving

There are some millennials who start saving early but there are also those who wait a long time to do so. If you are waiting to become “stable” to start saving money, you will realize when it is too late that you should start early. If you do more than one job or you get unexpected money from other sources, increase your savings or invest the extra income in long term investment options.

Too many credit cards

People are connected for instant gratification and especially for millennia. You want what you want and you want it now. Because of this many millennia have applied for many credit cards. This leads to permanent debt from which you never get out. Try to use cash as much as possible and avoid getting more than one or two good credit cards to build your credit score. Also, avoid having your credit card with you at all times as this will impede purchases.

Buying a luxury ride

A car is not an investment. It is a depreciating asset. Buy only the car you need and you can afford it. It is actually recommended that you buy a car for which you can pay cash or pay most of the money in advance. Don’t test the luxurious models as this will tempt you to get a loan so you can “treat” yourself.

Also, as you invest money, remember to save for retirement and keep an emergency fund.

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