How did you imagine your life would after you graduate college/university and start a job?
Regardless if you’re just starting out a new job or already working, chances are you encounter problems with regards to managing your finances. Life as an adult can be stressful especially when you have friends to keep up to, family to support, dealing with work stress, treating yourself on a self-journey, and many others. What’s worse is all this accompanied by student loan debt while you take home an entry-level paycheck.
Soon enough you’ll fall victim to financial slips and slopes. It’s normal; and soon as you recognize the problem, you’ll learn from it. It’s time that you start paying more attention to your finances and prevent yourself from committing financial mishaps. Here are the common mistakes you should avoid from making:
Keeping up with the Joneses
Keeping up with the Joneses, with all the trends and what’s latest, will do you more harm than good financially and psychologically. If you are surrounded by people who constantly and affordably live like such, don’t try to keep up with them especially if you can’t possibly.
This conundrum is common nowadays and prevalent in the young generation. Remember that with all your financial responsibilities, luxury should be the least of your priorities. Yes, you can treat yourself for rewards but not as often as every paycheck. Live within your means. If you can’t afford to buy something in cash, don’t dare purchase it with your credit card.
Not understanding what big purchases really costs
Before you go on buying large purchases, ensure that you’re ready to commit to its true cost. Case in point, car ownership which then would cost you gas, toll fees, regular maintenance, repairs, and the likes.
If you think you can afford the responsibility that comes along in big purchases, then, by all means, suit yourself. However, if you think you’re not ready to commit to such expenses, put your card on hold.
Not investing your money
You can ask your parents and theirs what they regret not doing in terms of finances, and chances are they’ll say not investing soon enough or at all. Don’t wait for the perfect time to invest in your future for the best time is now.
You swipe your card more often than you need
Not that credit cards are evil but in the hands of an irresponsible spender, it can be. Getting a credit card at your early age is a smart move to work positively on your credit score. However, if you fail to keep away from temptations, it can harm your score just as well.
It can be tempting to get your own hands on the latest iPhone flagship or test run the trendiest sneakers in town, however, it can also be quite costly. If you’re living all on your own now—paying your own rent, expenses, student loans, and the likes—you might want to reevaluate your lifestyle and be wiser with your money.
This is a no-brainer but we’d still remind you this: save up. Save up for a good enough budget lest you think of resigning from your current job. Save up for unforeseen emergencies, save up for your retirement. Save up for leisure.
Handling your finances can be difficult especially in your first years as an employee. What money mistakes have you overcome and how? Share it with us!
About the author: Chie has spent time figuring out ways of saving money and stepping away from her go-to retail stores. She then became a writer for QuickCash Australia which offers hassle-free loans services.