Yep! This is an interesting topic, especially for young people in their 20s, who may have just started their work and are earning money from their own work for the first time. Wow! This indicates that young people must be able to classify their financial priorities in order to have good financial planning. Unfortunately, young people tend to make mistakes to determine what are their basic needs and what are their only desires.
The following are some of the mistakes in financial planning made by young people in their 20s that we have summarized based on the entrepreneur’s website. Let us consider the following explanation.
1. Prioritize Desire rather than Need.
We know that we have to pay rent for a house or apartment, but because there is a big discount at the mall near the office, finally we are starting to be tempted to use the money that should be allocated at first priority and directed to things that are just desires.
Actually, we don’t really need new high heels because we already have two pairs of shoes in the apartment. However, often our imagination imagines that “who knows I need this item” or “maybe this can increase my confidence in the office” and so forth. In fact, without a new pair of shoes we would not have any problems.
The money we use to fulfill desires is money that should be allocated for needs, of which the first priority has short-term characteristics, such as eating and drinking. Just imagine if the money to buy food during the week we use to buy new shoes? I wonder what will happen?
We might get the pretty shoes we want, but we may have to endure hunger or eat unhealthy food at a low cost.
2. Often Tempted to Owe.
Entering our 20s, we need to manage our own finances. At this age range, we are already permitted by parents to hold their own ATM cards or credit cards. For some people who have started working in their 20s, offering credit cards is also very common. When the younger generation walks around the mall, there are so many bank agents offering credit card manufacturing services, “miss, bro, do you have your XXX bank credit card? If not, are you interested in making a credit card? Come on, let me explain first, the installments are light! ” credit card quote sentences really wrapped very pretty and attract the attention of the younger generation.
Installments are greatly facilitated, scattered discounts have made it easy for young people to be tempted to owe here and there. Yep! This is the second mistake that is often done by young people in their 20s. If we are always tempted to go into debt, then our financial planning will become messy.
3. Saving Cash, but Tempted to Take It.
If we have managed to save money in the bank, that’s good! However, saving cash at a bank also has a high enough risk. Most young people will be tempted to take their savings money in the bank. Whenever we are tempted to buy something, our minds always imagine “It seems like I have enough money to buy this item, the savings in XXX’s bank is still there, maybe I can use it first”.
Mindset or mindset like this is very dangerous for the future of our savings. Therefore, we advise Career Advice partners who are still in their 20s, not to focus on saving cash only. Fellow readers can also divide savings into deposits, so fellow readers will find it difficult to take savings in the bank.
4. Do not Set aside Money to Invest.
If fellow readers have succeeded in putting priorities and using money in accordance with existing financial planning, that’s good! However, fellow readers also should not forget the importance of investment. Investments are very useful to meet the third priority that we discussed at the beginning of the article. Later, fellow readers can use the money from investment to buy a future home, the cost of marriage, children’s education costs, worship costs, or establishing a business in the future.