Money Monday: Top 3 Financial Mistakes

Its Money Monday so lets start the week off right!

We know yawl went out this weekend and made some bonehead financial decisions in the club so let’s get you back in the game. These are the top 3 financial mistakes young people make and later regret!

1. Not Saving Enough

The number one regret is often not saving enough of monthly income. Failing to save makes your life harder in several ways. A comfortable stash of “vex money” is never a bad idea.  If an unexpected problem arises, the last thing we wanna do is to have to either borrow money or go begging to friends and family. A single disaster can send you into debt that could take years to repay.

Even if you’re lucky to avoid a great financial crisis, having no savings makes it more difficult to achieve long term goals.  That down payment on a house, that new car, or even that one epic pump with the Scorch team to Miami carnival becomes less attainable.

2. Racking Up Credit Card and Consumer Debt

Admit it, you bought that new pair of J’s with that credit card when you really didn’t need it.  We’ve all been guilty of going into debt for “unnecessary purchases.” What tends to upset us isn’t borrowing money in general – it’s just that we borrowed when we didn’t really need to.

Borrowing to buy a home or go to college can pay off in the long run, but borrowing to buy stuff you don’t even need, like vacations or jewelry, never does.

Once you’re in debt, it can be hard to get out.

If you don’t have any consumer debt now, you’re on the right track financially. Just keep doing what you’re doing, and don’t get trapped in debt over things that aren’t worth it. 

3. Overspending in Your Twenties

Even if you don’t get into debt, overspending is still a problem. That extra bottle in the club, that party that was total shit but you went anyway…  The more you spend, the less you can save to put toward your other goals. Many people regret “living large” in their twenties- blowing the bank on trivial things like dining out, clubbing, or clothes.

Now it’s also true that your twenties are the time in your life when you have the fewest obligations. As you get older, you acquire responsibilities like a house and children, which eat up a lot of your income. If you don’t take the opportunity to save while you’re young and unencumbered, it will be much harder later.

To have the best of both worlds, look for ways to enjoy your youth without spending all your money. You don’t have to sit at home alone every night, but set goals and prioritize!  Finally, if you want to splurge once in a while, spend your money on a great experience, such as a Scorch pump! 

The choices you make when you’re young have a major impact on your financial future. If you spend your twenties on a wild spending spree, maxing out your credit cards, and saving nothing, you’ll enter middle age with nothing but some crazy memories and a pile of debt.