Attention Millennials! Don’t Make These Common Money Mistakes
Reviewed by: Fibe Research Team
- Updated on: 10 Apr 2023
- Published on: 16 Sep 2021
Reviewed by: Fibe Research Team
Highlight: Millennials in the 21st Century find themselves in a confusing phase, with new things popping up every now and then, making you question your every move and decision.
Saving money for retirement or not spending lavishly on clothes, Millennials love not to think about the future with their cool abbreviations like FOMO or YOLO. Yet, when it comes to thinking about your future in a realistic way, they tend to blame everything except themselves for not using their money effectively.
However, one thing that millennials say about healthy financing is quite true, which is, “I’m not a financial expert, so how can I make good decisions in that area”.
Well, that’s correct. Nobody is an expert on personal finance and money-saving truly.
But you don’t have to be an expert to save money or make good economic decisions in your day-to-day life. Some simple, easy, and long-held truths about personal money management will do you more than enough to steer clear of an empty pocket and unhappiness.
Here’s a list of the most common mistakes that millennials need to avoid:
Now don’t tell me you haven’t done this. We’re all guilty of saying at least a few times in our life, “It’s only a few dollars right, no big deal.” The problem is, it is a Big Deal!
We all tend to make fools of ourselves when we say that taking a cab home or a coffee on the way to work won’t break our bank. The reality is they all add up. The old saying of – saving every penny every now and then doesn’t harm our lifestyle really but does make the future a lot better – is true.
Take a minute, think about it. You might not consider spending $5 on a cup of coffee, but if you do that five times a week, that adds up to $1300 a year. That’s a lot.
The biggest mistake you can make as an adult is postponing to save for your retirement. When you’re just starting out in a workplace after college, the thought of financial savings for your old age may seem outrageous. However, due to the nature of investment growth or compound interest, putting a little aside every now and then becomes a lot later down the line.
However, if you join this train of thought too late, then you’ll have a mountain full of needs to overcome in your old age.
But you might say that you don’t have any money to save. Believe me, you do. Even if it’s a couple of cents or a few dollars here and there, it will make a lot of difference in the future.
Back up now, a Credit what? Well, my friend, let’s have a quick lesson about credit scores, shall we?
A credit score is a 3 digit number that reflects how likely you are to repay a debt. Banks and money lenders use this score to decide whether or not they’ll grant you a credit card or a loan.
Your credit scores show how often you make on-time payments and how many good-standing accounts you have. For example, if you’re constantly missing your car payments or hitting defaults on your student loans, then it’ll negatively impact your score.
It’s like a battery indicator but for your financial health, in simple terms.
Scores usually lie in a range of 300 to 850. The higher the score the better.
It is one of the primary factors that banks and lenders look at when trying to decide to give you a credit card or a loan. Bad credit? Then bid goodbyes to your amazing home or car that you thought to buy with your credit.
Hence, a great credit score makes a man happy, healthy, and some more.
Sometimes keeping up with our loan payments is all we can do. However, it would be “wiser” to make investment a priority. Anyone introduced to the idea of the investing process seems to be overwhelmed by the sheer complexity of it and thereby leading to skipping it entirely, which is understandable.
But if you hang just for a little bit longer, you get to know that investing doesn’t have to be hard. If you start looking at some super simple funds and make your way up from there, then you’ll definitely know that it works.
No amount of money or wealth is worth sacrificing your health, life experience, and relationships for. Even though it is understandable to work really hard and try to utilise your youthful energy and vigor to your advantage, neglecting family and health might lead to stress, anxiety, and frustration from your everyday work.
Thinking that money comes first and rest comes later is perhaps the most common mistake that millennials make.
Unfortunately, no matter how invincible you might think yourself to be just for your age, it does bear its consequences. Working 70-80+ hours a week non-stop might increase your output and efficiency, but could also substantially deteriorate your health and relationships just as fast.
If you’re young, planning for your future isn’t an inherent idea that would easily intrigue you. Perhaps, living in the moment, what millennials call – YOLO and FOMO – might sound more appealing to you. But reaching financial freedom isn’t that easy if you keep spending at the rate of your earnings.
Just because you suddenly got a big bonus or a promotion, you don’t have to buy a new car, go for an exotic vacation, or buy a bigger apartment. Instead, stay ahead of your existing debt(s) and focus on the bigger picture.
With just minor adjustments here and there, buying a new house and early retirement might become a reality after all.
The Knot Real Weddings Study in 2018 showed that married couples spend an average sum of $33,931 on their weddings alone – which is far from the overall expenditure with their partners.
Starting life and home with another person is expensive and becomes even more so after your family expands with children and a house mortgage.
Research suggests that millennials tend to get married early and buy their first home too soon.
If you’re not financially confident to start your independent life, then you shouldn’t feel bad about not making such decisions soon, rather focus on the moment and make your financially stable first.
Money doesn’t fall from a tree, and nor do you find it in a treasure chest deep inside a dark cave. All of it depends on how self-conscious you’re about your living expenses and future decisions.
If you follow some good and healthy financial advice, and efficiently manage your earnings and expenses, then you’ll rest assured, be perfectly fine and reach your optimal future full of happiness and sunshine in no time.
Taking loans at the right time might just solve all of your financial problems including house and family expenditures to credit scores. That is why Fibe is such a good fit for your money-related needs, as it offers the ultimate solution to all your financial needs, be it shopping, traveling, paying bills, or anything else. It offers instant loans and personal loans catered specially to your needs.
Just remember to keep the previously mentioned things in your mind and do some research, maybe hire a financial consultant to manage your money, anything that makes you fully sure about the safety of your future.
Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs!
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