Everyone makes mistakes in life and they are part of learning to be better.
Some money mistakes, however, are unforgivable and you may regret them for the rest of your life.
In your 20s, you should be setting your foundation for a better future through proper money management.
Here are some money mistakes that you should never make in your 20s:
1. Living beyond your means
Letting your friends dictate the kind of life you lead whereas they earn more is a misleading idea. You end up taking debts to support a lifestyle that you can hardly sustain just to belong to some class.
ALSO READ: 7 mistakes people make in their 20s
2. Not saving for emergencies
Some people don’t actually make the effort to save. While you may not have experienced any emergency so far, you are never sure of what will happen tomorrow. Always have an emergency savings account just in case you get ill or lose your job.
3. Not tracking your funds
As early as now, you need to start budgeting for your income no matter how meagre it is. This way, it will be easier to plan for more money once you get there. When you don’t budget, you are likely to overspend or leave out some more important issues unattended.
ALSO READ: 6 secrets to becoming rich in your 20s
4. Not repaying your HELB
You might think that you have all the years to repay your student loan but the earlier you pay the better. The more the interests gets accumulated, the more you will have to pay for an even longer period. You don’t want to be gambling between repaying your HELB and paying your kids’ school fees.
5. Getting a car on loan
Do you actually need a car in your 20s? Well, it’s more of a luxury at this time and unless you have the money, you shouldn’t be taking a loan for a good ride. You would rather take a loan and invest in business than acquiring a liability on loan.