Biggest Money Mistakes 20-Somethings Make

 

Forgetting To Establish A Credit History
A good credit history is essential to a successful financial future. Landlords, lenders, insurers and even employers use it as a way to judge you.

Taking Out Way Too Many Credit Cards
Yes, you want to make sure that you establish a credit history, but that does not mean taking out every credit card imaginable. Taking our high-interest cards with large balances can lower your credit score and lead to overspending.

Paying Bills Late
If you want to increase your credibility in the eyes of lenders, paying bills on time is essential. Also, it is a good way to avoid unnecessary late fees!

Rushing To Get Your Graduate Degree
A graduate degree is not only a financial investment, but a time investment. Before embarking on a post-graduate degree, it is important to do a cost-benefit analysis to ensure the diploma you are seeking is right for you.

Building Way Too Much Debt Early On
Going after a degree at a time when you have to take out enormous student loans just to graduate puts you at a significant financial disadvantage once you finish school.

Using Emergency Funds For Non-Emergencies
It is called your emergency stash for a reason! And no, a flash sale at Nordstrom Rack is not an emergency.

Eating Out Too Much
Be honest, when was the last time you actually had a full fridge? Despite what you keep telling yourself about how expensive groceries are getting, the bottom line is that eating at home saves money, especially if you are single.

Not Saving For Retirement
We understand that retirement could not feel further way when you are in your 20s. But it is never too early to start saving. Need an incentive? When you are young, you have the advantage of giving your investments much more time to accrue interest and grow.

Paying Too Much In Taxes
As much fun as it is to get a tax return at the end of the year from the IRS, you only get a big refund when your employer is withholding too much money from your paycheck during the year. If that’s the case for you, adjusting your withholdings may be a good idea.

Buying A Round Of Drinks At The Bar
You know you can’t afford it. You might as well be burning your money.

Paying Too Much In Rent
Most budget gurus suggest that your rent should be no more than 30% of your monthly income. If you are anything like us, you are paying much more than that.

 

 
 
 
 
 
 
 
 
 
 

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About benvitalis

math grad - Interest: Number theory
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