Like many people, you may have failed through your 20s, making financial decisions that assisted you well at the moment but may not have been mainly accountable. Dinner out several times a week, credit card bills you barely looked at and luxury cars way behind your budget, life was practically a party!

But now, the party’s over. You’ve woken up in your 30s and realized that all that overspending is going to cost you big and it’s going to cost for years to come.
Fortunately, there’s hope. It’s not too late to fix the financial errors we all make when we’re young and blissfully ignorant.


No. 1. Carrying credit card debt.

Every month that you carry a balance on your credit card costs you money. And if you’re in your 20s, you likely have a moderately short credit history. That means your interest rates are higher than people who have a more extensive, healthier credit history.

Credit card debt is the second most popular type of debt in the United States. The worst part of it is that: 20% of Americans say they have no plan to stop their debt.
Charging things to your credit card is enticing and convenient, but if you’re unable to pay off the balance instantly, you’re wasting your hard-earned money on interest. Try to limit what goes on your credit card, even if it means missing out on fun activities or changing your lifestyle.

No. 2. Investing poorly or not at all.

Investing may seem like an optional expense. Why gamble your money on something that can’t help you today until far into the future? But, so long as you do it responsibly, your 20s are a good time to invest.
Losing money at the first opportunity you get isn’t responsible for investing. Smart investing involves careful calculations and analysis of your income, your current situation, your long-term goals and your comfort level when it comes to risk.
On average, millennials don’t begin investing in their retirement until they’re 36, according to a report from ValuePenguin. Only 38% of millennials currently contribute to a retirement account. But even a small amount of your paycheck put into a 401(k) plan or another retirement account has plenty of time to grow before you’re ready to retire.
Sit down with a parent or trusted adviser and figuring out what makes sense for you. Be a smart investor now, even if it’s a small amount, it could have a massive impact on your future.

No. 3. Living above your means.

No number of Instagram likes worth being financially unstable. It’s OK to pass on that perfect, picturesque (and pricey!) outing if you can’t afford it.
Fear of missing out spending is real. Nearly 40% of millennials said they’d spent money they didn’t have to keep up with their friends, according to a Credit Karma survey, and two-thirds said they feel buyer’s remorse after spending more than expected in a social situation they later regret.
If you’re uncertain or you can afford something, check your budget. If you don’t have a budget, create one. You can manually track your finances and calculate how much “fun money” you can manage to spend every month. There are also lots of apps that will track it all for you and provide a full picture of your spending.
No amount of Fear of missing out is worth the anxiety of not knowing how to pay off your credit card balance.

No. 4. Not creating a rainy day fund.

As you get older, you discover that a big expense is always around the corner: The car that gets you to work breaks down. You need to put down a deposit for a new apartment.
Approximately 40% of Americans said they would strive to pay for a sudden expense of $400, according to new findings from the Federal Reserve, while 12% said they would not be able to meet the cost at all.
These are expenses that could typically be covered with money from emergency savings or a rainy day fund. But without a safety net, these setbacks can lead to borrowing money, which gets expensive and can hurt your credit score.
Start by setting aside a little money every week, an amount that won’t have a significant effect on your life. Even $5 a week can make a big difference over time. Put that money via your rainy day fund and, if you can increase the amount you’re saving after a few months. You never know when you’ll need it.

No. 5. Choosing money overgrowth.

Numerous young people take job offers with a fair wage, turning down positions with a lower income but much more opportunity for growth.
It is essential to choose growth over money; these learning opportunities and chances for promotion are invaluable, and you will likely end up with a much better wage than the first job after a short amount of time.

No. 6. Being frugal and failing.

Often young adults in bad financial conditions commit themselves 100% to getting out of debt and saving up, leaving no money for anything extra. This can get very boring quickly and can result in binges of high spending.

This is no way to live; instead, factor in a small amount of weekly money for fun. Make sure it is a small amount, but you can spend it on whatever you want. This is more likely to assist you to save and pay off debt, as you are far less likely to carefully spending your money.

No. 7. No Health or Liability Insurance.

People usually try to reduce costs in these areas by accepting the risk that they may need insurance and won’t have it. This is a high-risk tactic that can significantly change your journey to financial freedom if you doubt this. Speak with a financial planner to determine what level of insurance you should have, given your age, health history, and lifestyle.

It is essential to start with good financial habits. Shunning money mistakes in your 20s and becoming educated and wise investment strategies can make an enormous difference as you enter your 30s and 40s, and even influence how and when you choose to retire as far away as that might seem. It’s never too early to meet with a FINANCIAL PLANNER professional to map out a strategy that will lead you on your journey to financial freedom.

No. 8. Not taking calculated risks..

Your 20s are a time when you should be seizing opportunities and seeing where life takes you. Take calculated risks now, before you have a lot of responsibilities (kids, marriage or needing to put others first). Smart risks include starting a business, moving to a metropolitan area (where there are higher-paying jobs) and educating yourself in your chosen career field.

No. 9. Paying off the bad debts first.

You’re committed to paying off your debts, but you may be uncertain where to begin. Should you work on student loans, your credit card debt, that car loan or a home mortgage? Financial experts suggest paying off your highest rate of “bad” debt first.
Bad debt is anything that doesn’t increase your financial situation, which includes personal bank loans, automobile loans, and credit cards. Focus on paying off whichever debt is charging you the highest interest rate.

Watch the full video in the below.


https://www.youtube.com/watch?v=BNymag7FedQ