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5 Terrible Money Mistakes To Avoid In Your Youth

 

From the ages of 18 to 30, we tend to make a lot of mistakes with our money. The worst part of all is that we don’t realize that they are actually huge mistakes until many years later.

 

 

Thankfully, I’ve had the opportunity to surround myself with other people who have taught me valuable money lessons from their own experiences.

 

 

In this article, I share 5 terrible money mistakes to avoid in your youth:

 

 

1. Living The YOLO Mentality

 

Drake spread the phenomenon of YOLO, which means “you only live once.” More and more of our youth are embracing that motto in their lifestyle, which is a devastating move.

 

 

If you just got a paycheck, you have three options. Save it, invest it or spend it. More and more of our youth are choosing to ‘spend it’ because they are stuck thinking in the now. It’s okay to have fun and enjoy your youth, but weigh your decisions prudently.

 

 

2. Carrying Credit Cards

 

Credit is a death trap. While I personally have chose not to put a credit card under my own name, I know many young people that sign up for their own credit card the moment they turn 18.

 

 

Credit cards are great if you’re trying to build your credit, but you have to pay off every dollar you spend. If you’re swiping your credit card without thinking of the consequences, years from now….you’ll wish you hadn’t.

 

 

3. Failing To Plan

 

In life, you need to have a plan. If you don’t, then you’re just aimlessly following some path without really knowing what your next move is. As an entrepreneur, I am constantly planning out my next move whether I’m right or wrong.

 

 

To be financially wealthy, you cannot expect to just fall into money. You have to plan, prepare and execute until you achieve your goals. Plan as early as you can and run with your ideas.

 

 

4. Not Budgeting Your Life

 

As you get older, the number of responsibilities and bills you have go up. Things such as car payments, insurance payments, gas, electricity, etc. come creeping into your life.

 

 

If you aren’t ready for these responsibilities, you can really get blindsided by them. I recently moved out on my own and had to learn a lot about budgeting. Before you make any financial decision, you need to budget how much money you will be spending and whether or not you can comfortably afford it.

 

 

5. Being Too Passive

 

Your youth is the best time to be aggressive. You can take risks and tackle opportunities left and right because you don’t have the same responsibilities you will have when your older. However, young people tend to be the most passive of all.

 

 

If they see an opportunity, they decline it because they live with the mentality that they are young and another one will come soon enough. Your youth is a time to take advantage of all the opportunities that come your way. Be wise.

 

 

Conclusion

 

In this article, I shared 5 terrible money mistakes to avoid in your youth. Do you have any other advice? Please share it below in the comments.

 

 

photo credit: peddhapati via photopin cc

 

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