Ever wondered why you always struggle to save whenever you come into money? The good news is you are not alone. Many young people find it difficult to handle money due to poor money management habits and they end up making decisions that aren’t necessarily the best for them. Below are some of the most common financial mistakes people under 30 make (and we have some tips to help you change them):
- Not Saving: This sounds cliché but it can’t be overemphasized. Saving is an important habit you should develop and there’s no better time to start than now. As someone in your 20s, you’ll always find reasons to spend – from shopping to going to the movies with friends, getting the latest devices amongst other things. Curb that by working out a percentage of your income to always set aside. Avoid buying things on impulse, always outline items on your shopping list and stick to it.
- Excess bills: Mobile data, Netflix, grooming, and hangouts are bills that easily pile up to sweep your account clean. They all look insignificant individually, but when you gather all your bills together, you would find out that it’s actually quite a lot. Change that by prioritizing your spend. Some things are absolutely important, others can wait. Before you spend, ask yourself how important that thing is to your overall well-being and personal development.
- Over-lending money: Yes, we get it; sometimes, someone you care about comes to you for help and you can’t say no. It’s fine to help people in need. But we have a guiding rule: do not lend what you can’t gift. This is important to avoid planning on money you may never get back. Plus, it helps to make sure you are not lending what should sit in your savings account.
- Not investing: The most common excuse people give for not investing is “I don’t make enough money for investments” but newsflash! – it’s not true. There are several investment opportunities you can explore with a low consistent budget. Ever heard of a Money Market Fund? Yes, you can start with as little as N5,000. You can also start a small business which can increase your income over time. Here are some small business ideas you can start with a small capital.
- No financial plans/goals: Without set financial targets or goals, there is nothing to guide you on how you should save or what to do with money. But setting a target would be a guiding principle for how you handle your money.
- Buying everything brand new: You should obviously buy some things brand new, like your clothes, shoes etc. But products like cars or phones can be bought fairly used. There are really good fairly used products out there and they are less expensive than the brand new.
So Flexxer, avoid these financial mistakes, open a flexx account and start handling your money with care.