For this present generation, your 20s may seem like they are all about embracing mistakes. when it comes to issues of money, what you do now can make or break your future in financial success. Here are some solid money mistakes you must avoid in your 20s.

1. Not budgeting : Failing to set up and follow a monthly budget can leave you living from one paycheck to the other paycheck. Worse yet, you may find yourself swimming in debt when you are tempted to spend more than you earn. But if you have a well-planned budget, you can not only stay in the black but can also save for emergencies or and your retirement. In other to get started, you will want to track all your expenses using a budgeting app or pen and paper. To create your budget manually, list out your monthly expenses and then subtract them from your total income. From there, you can figure out which unnecessary costs you can cut back on in order to reach your savings goals and Pay for essentials.

2. Not saving for emergencies: An emergency fund can spare you from major debt if you suddenly lose your job, or maybe experience a medical emergency or incur any other unexpected costs, like an expensive car fixing or so. Your savings should cover six months worth of expenses. Ideally, this would give you a bit of the flexibility to bounce back from the emergency. To make your saving convenient and consistent, it helps to set up an automatic transfer from your checking account to your savings account around the day you get paid.
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