We all make mistakes with money, especially in our 20s, and I was no different. Let's check out the top 6 mistakes I made during my college days and early on in my career.
As I graduated from college, getting a job was not easily combined with the recession that happened in 2008 was the worst year anyone can graduate.
Over these years, I have grown better with finance and learning new ways to make peace with past mistakes. This is a personal financial journey mistake that I have made and how you can avoid them.
- Not starting investing early: I strongly recommend if you are in college, define a financial goal like buying a high-end computer or even for retirement (no joke !) and start investing towards it in mutual funds as SIP. Get the benefit of time and power of compounding work in your favor. May the POWER of COMPOUNDING be with you
- Using responsibility on a Credit card: We all have used the credit card for some of the other scenario and have made wrong or unnecessary purchases or even making the minimum payments. But if used correctly by managing the payment on time it can really build up your credit score. Use of a selected credit card can even access the airport lounges or points can be used to redeem to satisfy the desire of buying a shiny toy without guilt. But Yes, Responsibility sucks!
- Useless luxury - watch or iPhone: 20s is all about I care for myself or treat me first. With the power of purchase, I brought expensive phones- which I never needed or other luxury items to show off to my friends or impress someone. In other words, to keep up with someone who recently brought a fancy new toy - what we call FOMO Syndrome - Fear Of Missing Out.
- Buying a new car /Bike - You are never too young to talk about Cars or bikes. Especially in your 20s when riding past the highway with the wind passing through you. I'm definitely not against buying bikes or cars, I had about 5 different bikes in the past and now I have 1-superbike which I take it out occasionally for a spin. But the problem is purchasing right out of the showroom, as soon as you drive the vehicle out of the showroom gates, the cost of the vehicle depreciates more than 25%. Have patience, and find a neatly used vehicle that fits your bill perfectly.
- Not investing in yourself - Pay yourself first. Do invest in yourself. Commit to a schedule of doing SIP for retirement or invest in self-help or do advanced In courses that will give the edge in advancing your career. Thus giving the ROI. Make this a habit of investing in yourself first. It can be both financially and academically.
- Not traveling enough - At the 20s, we are young and carefree to travel across the world. When young, don’t travel as a tourist but as a traveler. If possible travel alone, spend time with local people and explore local cuisine. Don't be addicted to just books as in college, work, or office. Get out of that cubicle or college regime and explore that beautiful world out there. It took some time for me to realize that but I started way back in college traveling across India. Wishing you luck in exploring the country before making any international trips.
Where there is a will, there is a way!
To sum it up, you cannot learn from your mistake alone. See others' mistakes and overcome them.
