Financial mistakes young
When you’re twenties, you just learn to live in the adult world. And your training is by deep immersion — you still don’t know how to play it, to live independently, to build a serious relationship, etc.), but already has. The world already considers you an adult, and you, please, answer.
There are several major financial mistakes that you do when you’re young.
1. You take a loan on a car
Or any other large loan. Of course, you, like all of us want to look successful to impress girls and so on. But, first, if you’re more or less out of your mind, you will agree that the ability to «look» successful may not be the goal of adequate human. To be successful — that’s more like a goal.
Second, even if you have more or less normal salary for your city and your age, current interest rates, most likely, will leave you miserable from it only the part that will be enough only for coffee and cigarettes. You ask: what’s wrong with the loan if money left over after monthly payments, still have on the life and times during the month? We will reply below.
2. You do not create a stabilization Fund
If you pay the loan, you will likely neglect to create a kind of financial cushion that will save you in case of loss of regular income. In other words — if you, say, get laid off, then not pay back the loan or buy coffee you’re going. Never mind the coffee, but that delay credit payments could cost you very dearly.
3. You’re not saving up for the future
And go back to your debts. Let’s say you manage to pay in installments bought a car and even save something for a rainy day. But where is your concern for the future? Not that worth it right now to save for retirement (although, ideally, it should)… What if in a year or two or three, you want to marry or have children, or, as unfortunately often happens that the child himself will appear and you will not be asked? What will you do? Ask for help to your parents?
4. You are asking for help from parents
Life by parents, especially when you’re a big boy and used to make decisions on their own — that’s not cool. First, you’ll need to keep their independence at this period, because you are once again financially dependent on them. Secondly, this life is discouraged. You just relax and after a while dangling, legs with the parent of the neck.
5. You borrow from friends
Remember, back in the beginning of a financial relationship, end the friendship. Not to bring the situation to the fact that I had to borrow from friends, God forbid, you will not be able to give. Then friendship over.
6. You live off of credit cards
The surest way to end up inside a vicious circle of endless, ever-growing debt is to live off of credit cards. Add to this the above mentioned car loan — and here it is a complete financial collapse with all the consequences.
7. You are not able to plan
In itself, the desire to raise money, of course, is commendable, however. If you expect that you will postpone «sometimes some amount» — it is unlikely to progress much further. To achieve a certain financial success you need a rational approach, in other words, the plan, which would mean promising big spending as well as the amount that you want to hold off.