9 Money Mistakes to Avoid in Your 20s to Live Prosperously in Your 80s

The 20s are considered as the golden era of your lifetime.
You go on making plans after plans every other day without giving much thought to your financial status.
In this age, young-adults prefer to live the best of their lives, no doubt they do fall now and then, but only to rise back up again as they learn from their mistakes.
As a young adult yourself, you must know what it feels like to be an independent person for the first time.
The budding excitement you feel when you first enter in your 20s, all the plans you make somehow makes life’s looks so much better doesn’t it?
No more of your old folks’ bickerings and orders, you’re finally free from the restrictions and limits. It’s your time of life.
So, grab a nice pair of boots, style your hair, tuck in your casual shirt, and dive into an insane ride of what it’s like being in your 20s.
The charm of the 20s is once in a lifetime experience, but despite all the fun growing up, several responsibilities star knocking up your door.
We all enjoy being independent, I’m sure you do too, but it also comes up with several challenges that we are not entirely ready for.
Among the greater responsibilities that lie on a person’s shoulders as soon as he enters the 20s, financial balance is the most challenging.
Counting pennies and living within a budget isn’t fun, and it gets almost impossible to balance your finances when the initial thrill of living outside the boundaries starts running in your veins.
No matter the naive age, you can always do a little something to make a difference.
That’s where we will help you out!
Are you worried about your future? Well, it is time now for you to say goodbye to your everyday worries because you have come to the right place.
Here are 9 Money Habits you will need to avoid in your 20s for a better future.
Keep your head high and stick with us through the way!

1. Excessive Hangouts

Being in your 20s and not having hangouts? That is impossible!
We all enjoy going out with friends, eating in a good restaurant, watching movies now and then, partying.
But do you ever sit alone and wonder how much does it cost daily and where you are heading in your future.
Now that you are independent of your parent’s hold, you must be cautious of where, and how much you spend in your routine.
No one is going to stop you from having the time of your life, what’s life without fun?
All you got to do is be a responsible adult instead of the same naive kid you were before and minimize your day-to-day hangouts.
Go out with your friends but be careful about the amount you are spending.
Furthermore, you can also limit your partying and dinings to weekends our once in two weeks.
I know this all seems dull for a youngster, but it’s better always to make little amendments in your daily life than repent in your future.
You have surely got this!

2. Spending More Than You Make

Waking up without money worries, well we all know that time is gone now.
One of the most toxic money eating habits is spending more than you earn!
No Aladdin lamp or a magic wand is going to fix your future for yourself. You are accountable for whatever outcomes your future will give you.
But to your delight, there’s another excellent habit you can adopt to secure your future.
Spend less than you earn!
You are now financially free, earning yourself even if it’s a bare minimum. Do yourself a favour and minimize your everyday spending.
It is true, growing up is hard, but you are also the strong one.

3. Not Planning Your Budget

In our teenage, the idea of “freedom” fascinates us so much that we anxiously wait to be 20 finally.
It’s a great thing in one’s life, but to be fair, there is nothing wrong with following specific rules and boundaries.
We overspend every day on every little thing in our life, be it clothes, accessories, food, entertainment, etc., and the worst thing is we have no budget plan.
We have no idea how much we are spending on one particular thing and how less we are saving for our vital needs.
Here’s an idea for you, make a budget plan!
All you got to do is track down your expenses, know your earning, and make a budget for your everyday routine. Know how much you’re going to spend and how much you need to save.
It’s always a good idea to adapt to some new and fruitful habits.

4. Not Saving

You have got to agree with me here. We young adult hates saving.
Come on, who can know that there is money in your account and you cannot spend, but there is nothing better than saving your money for later use.
Being young, we rarely earn too much to save, but we’ve got a treat for you.
You must ensure to save $1 every day.
I assure it is as simple as it is.
You won’t even know, and it will do wonders for you.

5. Not Having an Emergency Fund

The scariest thing about life is its uncertainty.
You never know what can happen the next moment.
Emergencies can happen to anyone anytime.
Not having an emergency fund will worsen the critical moments of your life.
To protect yourself, you must have an emergency fund.
It will ease your mental stress by protecting you from crippling debt and give you peace of mind.

6. Poor Credit

Living off credit cards could be quite addictive, but it is also one of the most terrible habits.
You might buy something of your liking now, but sooner or later you have to pay for it back.
As loads of the debts increase, it gets frustrating to pay them back.
You should always protect yourself from that crippling stress.

7. Not Setting Financial Goals

The future is not something we often think of; living in the moment is what we prefer.
Not setting financial goals can impact your future drastically.
You must know what is essential for your future and strive for it.
That’s what matters here.

8. Buying Expensive Cars

We are always attracted to new and innovative things, and so we excessively spend on them.
True, a vehicle like a car is essential for your everyday routine, but buying expensive cars can disturb your budget and leave a critical impact.
Get yourself a car that is suitable for your budget, and does it’s work well.
Be smart in your choices!

9. Wasting Time

If you’re sitting all day on your sofa munching to junk food, trust me, you are your enemy.
You in your 20s have the proficient skills and enormous energy that you will not have again.
Now is adequate time for you to stop being sluggish and do something productive.
Start small and earn enough for yourself at least.
Say goodbye to your sluggishness.
Even though the 20s are the most delightful period of your life and there are several ways you would want to spend but avoiding some of the toxic habits will save you from your terrible anxiety and crippling money problems.
So, start letting go of these destructive habits now that are only eating away your great future ahead.



Jun Sing Tan

I help young adults and working professionals achieve their financial goals with a full suite of risk management and wealth accumulation solutions. I firmly believe that financial education should be easy and achievable for all. I am committed to service and hope to be your one stop financial solution.


Jun Sing Tan

November 18, 2020