Starting early in life gives one an edge over others in the financial sphere. Taking financial responsibility early in life is one task that many people below thirty don’t really take seriously, because of the perception that they have time to their advantage.
Hence most people who start earning some money in their twenties may never think about building their financial empire. Consequently most young people make some of the following financial mistakes in life.
·Working for money instead of building one’s dream: Some young people engage in jobs that are just convenient for them, and not considering other income sources to build their financial base for future even though it may be tasking at the moment. To avoid this pitfall, look out to challenge yourself and build your own dreams even if it does not exactly seem logical now, create something with great value so you can reap the financial gains in the future.
· Engaging in spending spree: Many young people in their twenties assume that money made at this stage in life should be used for “giving oneself a treat” or “spoiling oneself”. They feel they are entitled to so much luxury in life since they work hard hence they deserve so many purchases and vacation. Understandably these vacations and treats spice up one’s life but should not define one’s goals in life.
· Procrastination, excuses and apportioning blames to everyone else concerning financial responsibility: Procrastination tends to plague young people in life, who assume that they have all the time in the world to make it, they give excuses why basic financial decisions should not be made immediately and blame everyone else for their woes instead of standing up to challenges in life.
·Engaging in competition: Many young people make the mistake of engaging in competition and following trend, investing all their life’s earnings on what is in vogue. You can be aware of the trends but never follow them especially when you don’t need such trendy things. Moreover, you spend valuable time, energy and resources trying to keep up with trends instead of setting up your own trend that will add to your financial portfolio.
·Thinking you need to stop learning because you have learnt enough: It is a costly mistake to stop learning because you think you have reached the peak of your career or that you have a fat bank account. It is a big mistake to think that because you are experiencing a measure of financial stability early in life you don’t need to acquire more skill, upgrade your educational status or even put in more hours of hard work. Note that you will experience decline in your success story if you don’t learn new skills and will little or no opportunity to celebrate your achievements in the future.
·Overburdening oneself with family financial responsibilities: Many young people make the mistake of hearkening to every financial request made by members of their family instead of rendering the little assistance they can offer in their own capacity. Definitely, the early working years of your life will be accompanied with poor investments on your own part if you fail to see to your own welfare by investing into your financial future. Rather than always listening to people in your circle of friends or family that always come to you for financial assistance. Most a times, it is discouraging to lend a family member money because most often than not they never repay such money without a strain in your relationship.
·Spending every dime you earn and neglecting to set some money aside: Lack of a saving culture is another mistake of young adults who imagine that money will always be there for them to spend and fail to save for the rainy day.
·Associating with the wrong company: Associating with the wrong company either as friends or professional associate can cost a young person his or her development or fortune in the future.
Friends could have been great to you as a child, but if they no longer hold the value and inspiration that is needed for you to thrive in life then let them go. The people you should surround yourself with are people who propel you to achieve your aims and spark up your ideas.
·Thinking you can’t make wealth while Pursuing Your Passion: Most young people fail to see the possibility of making wealth from their hobby. They fail to realize that they can make money from their hobby. Are you a sports enthusiast? Make money from sports, are you a geek? Make money programming; do you have eyes for beautiful environments? Then make money designing and decorating.
· Failing to establish a career path: Many young people never think of following a career path. Building a career that they want for the long time should be paramount goal of young people. As a young person starting out in life you should establish the fact that your previous jobs are building blocks in your career path.