Not all 20-somethings are great when it comes to money.
There’s so much conflicting advice and research out there; everyone has a different opinion on how you should save, invest, and spend. It’s enough to give you a coffee liqueur-inspired headache.
So, to cut through all the nonsense, I’ve made a list of the top mistakes I see millennials making with their money, and how to avoid them. You. Are. Welcome.
Side note – watch this video below if you’re thinking about asking for a pay rise. Post continues after video.
1. Not investing for the future early enough.
Before you slip off into a boredom coma, hear me out.
It doesn’t matter if you’re not earning a high income or are saving for other big goals right now. Investing early is one of the key steps to financial security. Thinking long-term and looking into the benefits of compound interest might just help you retire early down the track.
Being hellbent on buying a home is fine, but it’s always worthwhile looking into other ways you can safeguard your future.
2. Keeping Up with Instagram Culture.
We all want those Gucci belts that are all over Insta. Same goes for the shiny Audis, endless holidays to the Maldives, and gold-flaked lattes. But.
Just because we want them, and they look pretty in the Ludwig filter, doesn’t mean we can afford them. The Instagram optics of what a millennial life supposedly looks like can be tempting, but putting yourself in debt (yes, including Afterpay debt) can seriously put your financial health in jeopardy.
Some debt – like a mortgage – can be good debt that serves you and your interests. Other debt – like what you owe on a credit card – simply sets you back from the pack. If you see someone your age living large on Instagram, always remember they’re probably living large on borrowed money and time.