Big money is all that comes to everyone’s mind, but not often the mind of a twenty-year-old. However, your twenties is the time to think about money more than ever. These decisions, when it comes to saving money, spending money, or investing money, matter more than ever. If you start to use money tips early, you can save yourself loads of financial woes in the future.
Here are the worst trap to fall into and figure out exactly how to avoid it and keep your hard-earned money.
Spending more than you earn.
It can be easy to assume that since you’re earning money anyway, why not go ahead and spend it? Well, it wouldn’t be best to do that for several reasons. For one, the money isn’t actually in your bank account yet, so if you were to spend money you don’t have it could put you into serious debt. Debt isn’t something that needs to be accumulated in your twenties.
A good rule of thumb to avoid getting into debt and spending more money than you earn is to make sure that you stick to a budget. After bills and other monthly expenses are paid for, with the remaining money, it would be smart to put half in savings and use the other half for fun. Make sure to avoid spending money that isn’t in your account yet, otherwise you may never see the benefits of living debt-free because of the choices you made in your twenties.
Using all of your savings on your wedding.
Yes, a wedding is certainly a fantastic day. It’s a day to celebrate, and it’s a day that many people want to spend tons of money on. If you do, that’s not a problem. The only thing that you may regret from having a big wedding is the idea of spending all your savings on it. That’s years of money, years of saved money, spent on one event. Even though the event itself is a fantastic event, and something that is worth celebrating, one of the biggest mistakes you can make in your twenties is spending every penny on it. Try to make some cost-cutting solutions where it can actually be done, and where you would be okay with making budget cuts. In the end, you’ll end up with more money to spend with your future spouse.