Being fresh out of college and having your first job can be both exciting and stressful. Being faced with new challenges and having met new people is exhilarating. However, you will also encounter more stressors such as hard-to-please bosses and finances, which is the biggest of them all. Managing one’s money never gets easier with age, but if you start early, it will make a lot of difference later in your life. To make sure you are right on track, avoid making these too common money mistakes that Millennials make.
1. Overspending by Over-Swiping
Credit cards have different benefits such as increasing points every time you book your flights, but there’s a serious danger to abusing it. With a credit card, you are always tempted to spend money that you don’t have or don’t have yet. Forbes contributor Kelley Long notes that it all boils down to prioritizing. Think twice about using your plastic card the moment you see a “Sale” posters plastered all over your favorite clothing store.
2. Giving in to Peer Pressure
There would be invitations from friends to eat out and have drinks all the time. It’s all well and good to be spending time with friends and socializing with a new crowd at your workplace. However, you don’t have to say “yes” every time, so you wouldn’t feel left out.
3. Skipping on the Emergency Fund
On top of clearing all your bills and putting aside a portion of your income for savings, you should also have an emergency fund. As you know, life is unpredictable and unexpected things may occur. You should never neglect the importance of an emergency fund in case of a medical emergency, being let off from your company, and other disasters that require you to have resources quickly.
4.Putting off Investments
Don’t be too conservative in investing. If you are solely relying on your monthly paycheck, it would take decades to be financially independent. Find other sound ways to grow your money and secure your future such as having an insurance savings plan. Like what money expert Stephanie O’Connell says, you cannot grow your money by only saving up, so do consider investing.
5. Comparing Yourself to Others
Seeing how your friends and other people your age can afford luxuries or rise the corporate ladder quickly can be depressing, especially when you are feeling lost and if you stress over not having enough. Stop torturing yourself and never compare yourself to others. If you keep on racing with others, you won’t be able to focus on yourself and you will deprive yourself of celebrating small victories.
Adulthood is hard – mostly because you need to be responsible with your finances. Nonetheless, you need to remind yourself that starting young means reaping the benefits earlier in life. Don’t use youth as an excuse to waste away and be irresponsible.