We all know our 20s are a time for experience and experimentation, as we try out new versions of ourselves and explore what really matters to us.
However, they can also be one of the most unexpectedly expensive decades of our lives, as new financial commitments begin to pile up.
Here are the key financial mistakes to steer clear of during your first ten years as a fully-fledged adult…
Credit Card Debt
It often seems like the moment you turn eighteen, you’re inundated with offers for new credit cards. While proper use of credit can help you establish a credit file (and prove beneficial in the future), getting into credit card debt is a very bad idea. If you need to take out a card, then always ensure you make your payments on time – and try to either pay the balance in full at the end of each month, or to exceed the minimum payments to help get your credit score back on the right tracks at a faster pace.
Not Investing in Yourself
It’s worth remembering that not all the things which cost you money in your twenties are a waste of time. Investing in key areas such as education and professional development can help to set you up for a positive future, rather than causing you trouble further down the line. View new opportunities for investment with a clear head and carefully assess the risks before taking the plunge.
Failure to Plan
Anyone can be struck by a sudden expense by failing to plan – and not installing a ‘buffer’ to help you handle more insecure financial times – is a sure way to leave you feeling troubled by your own finances. Carefully plot out your expenses and begin the journey to saving early.
Avoiding the Property Market
We know, it can be scary to think about investing in property – and the younger you are, the more it feels like you’re locked out of property ownership altogether. Yet this is only part of the story. A new wave of investment opportunities has arrived to meet the growing demand for diversified means of owning a property, including indirect investing and crowdfunding. Look into these options and assess how much you can invest. Don’t let your youth put you off getting involved in a potentially profitable new adventure.