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10 financial mistakes that we often make when we are young

With a developed society, up to one-third of young people lack financial literacy, good money management skills and a stable income. Learning how to handle money properly and how to make the right financial decisions at a young age is something everyone should learn. And the best thing we can do before we go out into the world and deal with our money is to try and educate ourselves to stay out of trouble. However, there are still 11 money-related mistakes that many young people make.

1. Try to keep up with your richer friends

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When we hang out with friends who are richer than we are, we may feel compelled to keep up with them, buy designer clothes, buy luxury cars, and pay for trips around the world. It’s important to know your limits and not go into debt, not just so you can fit into a rich person’s lifestyle that you have to take risks. After all, success and money come at different stages in life for some, and we need to be smart to handle them.

2. Not spending your salary properly

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Proper financial management and learning how to do so as soon as possible will be extremely important to you. In fact, the 50/30/20 budgeting rule is a simple and easy to follow rule for greater financial stability. Set aside 50% of your income for rent, food, transportation and bills, 20% for savings and debt repayment, and the remaining 30% for you and whatever you want.

3. Always order takeout

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When you live away from home and rarely cook at home, it’s inevitable to start ordering food over and over again. That means you start to overspend on food and may not be financially stable enough to pay for it. Instead, go to the grocery store, buy the products you need, and cook for yourself. If you can’t cook, you should try to learn.

4. Using your credit card too soon

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Using a credit card early on can be good for your finances, but only if you take responsibility for it. If you can’t afford the monthly payment, but feel like buying a lot of things you may or may not need, it’s best to wait at least until you have a well-paying job.

5. No retirement plan

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You might not want to think too far into the future when you’re in your 20s because there’s still time to roam your life, but that would be a mistake. You should find a way to put money into a retirement account as soon as possible, because over time it will earn interest and you will find yourself with plenty of money to spend in your golden years.

6. Skip insurance

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You may feel like a superhero in your 20s, but you’re not invincible and shouldn’t think you’re completely safe from injury, illness, disaster, and other problems. . You should not ignore insurance.

For example, renter’s insurance will save you money in the event of an emergency, such as a burglary, fire, or flood. Health insurance can save you money in the event something bad happens. It is important that you do your best to keep yourself protected.

7. Don’t take risks prematurely

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You might not like your current job in retail, driving for Uber or Lyft, but you’re too scared to quit because at least you have a steady income and a job that feels safe. However, if that’s not what you want to do with your life, you shouldn’t be afraid to take risks.

Especially in your 20s, even if that means taking an internship. The job may not pay, or it may pay less, but if it’s a job you enjoy and want to do, then you shouldn’t be afraid to start from scratch because it means it won’t work. make your future better.

And after all, your 20s are the best time to learn a skill, it’s better to start now than to switch careers a lot later in life.

8. Owning a pet too soon

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Having a pet may seem like the next step to independent living once you’ve got your own place, but it might not be the best idea. Sure, they’re cute and nimble, they’re best friends, but that’s not all.

Pets are really expensive to take care of, because they have needs too. Whether it’s food, toys, vaccines, vet bills or grooming if needed. Those things add up and it can take a big chunk out of your paycheck, so you need to consider whether you can afford to own and take care of a pet, as it’s a huge responsibility. and important.

9. Spend to make yourself feel happy

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A lot of people buy something they don’t necessarily need, just because they feel sad. The truth is that these purchases may make them feel better, but they are not the solution to the problem. It’s all about wasting hard-earned money that could be spent on something you really need. Being kind to yourself is important, but it must be done responsibly.

10. Moved out too soon

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You may think that by the time you are 18 or 21, you should leave home to be independent and enter the big world on your own. Sure, it’s great to learn how to fend for yourself and learn to be independent, but you should be smart about it. Moving out means you have to start paying your own rent and bills, you have to learn to cook for yourself, and your first home may not be as nice and cozy as the one you grew up in.

These things need to be considered when implementing. And you can wait a bit before moving out, when you already have a stable job with a decent income to feel a lot more comfortable.

Theo brightside

https://afamily.vn/10-sai-lam-ve-tai-chinh-ma-nguoi-tre-thuong-xuyen-mac-phai-keo-toi-su-hoi-han-mai-sau-nay- 20220314162958663.chn

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