9 Money Mistakes to AVOID in your 20s

So I’m turning 30 this year and in my 20’s I’ve definitely made some money mistakes I wish I didn’t. So in this video, I’m sharing with you 9 Money Mistakes To Avoid In Your 20’s
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Disclaimer: I am not a financial adviser, I am not an accountant, I am not a tax adviser. This video and my channel is for general information only, as with anything in life you should do your due diligence and seek independent advice.
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1. Not investing
This is a mistake I personally made for a few years in my 20’s, instead of investing I held my money in cash in a savings account because I honestly was scared to invest and I had no idea how to even begin.
Because of compound interest, the longer you wait on the side lines the more it’s going to cost you in the long run.
2. Trying to get rich quick
When in your 20s, it can be really tempting to try to get rich quick especially when you’re on social media all the time and seeing all these influencers and celebrities living it up.
The next thing you know you’re googling “how to get rich quick” and the results show you : a secret investment course that you can buy for $2999 or a multi level marketing opportunity with guaranteed results, or a special cryptocurrency that’s going to the moon - well I hate to be the bearer of bad news but the only person that’s going to get rich is the people selling you these schemes.
Unfortunately, there’s no guaranteed way to get rich quick but there is a slow and steady way to build wealth and that is to invest regularly over the long term in an index fund.
3. The 3rd money mistake is buying an expensive car.
So you’re in your early 20’s and you finally got a decent paying job and you want to treat yourself and upgrade your car to something fancy
Don’t do it! Spending a lot of money or worse going into debt for a fancy car is a waste of money on something that will quickly depreciate. Not to mention, if you’re buying a luxury vehicle like a BMW or Mercedes, you’re also going to pay a premium when it comes to maintenance and upkeep.
4. Not building your credit score
The easiest way to start building your credit score is to get a low or no fee credit card and to always pay the balance in full every month. You should be using this credit card for everyday purchases that you can afford and not on luxury goods that will cause you to end up in debt.
5. Speaking of debt, one of the worst money mistakes you can make in your 20s is to get into credit card debt.
The problem with credit card debt is that it snowballs incredibly quickly thanks to the high interest rates they carry, which in Australia can range from 12% up to a whopping 20%
Now some tips to help you avoid credit card debt include:
Reducing your credit limit
Paying your balance in full every month
Always paying on time
And most importantly, only spend what you can afford
6. Not shopping around or comparing quotes
You can save a lot of money by shopping around for the best deal on services like your mobile plan, internet, insurance, energy, even home loans.
A lot of people will stay with the first provider they signed up with and don’t realise that there’s better deals out there. In fact, a 2017 survey found that nearly 40% of Australians are still with the same bank they signed up with as a child.
So do yourself, set some time and review your current providers and compare it to the other options.
7. Not having an emergency fund
When you’re in your 20s, you’re probably not thinking about unexpected expenses let alone having an emergency fund..
In fact a 2019 survey of 1000 Aussies, found that 55.5% couldn’t cover an unexpected $1,000 emergency expense with their savings.
8. Not budgeting
Another money mistake to avoid in your 20s is not budgeting. Personally, I didn’t start budgeting until I was 25, before then I had no idea how much I was spending and as a result I purchased a lot of things I probably shouldn’t have.
If you’ve never budgeted before, don’t worry there’s heaps of free templates and apps that you can use to help you.
9. Going into debt for a wedding
The average Australian wedding costs $36,000 and according to a Moneysmart survey, 60% of couples got a loan for their wedding. A personal loan over 3 years can have an interest rate of 6% all the way up to 15%

[@wotwot9754]

Lol, love how you added the doge part! Also thanks for all the advice, I recently turned 18 and I’m not a spender as I live with my parents. I’m gonna check out that other video you linked after this one is done!

[@ChrisChowShow]

Thank you for watching and happy birthday :)