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Don’t Make These Money Mistakes in Your 20s

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Don’t Make These Money Mistakes in Your 20s

Whether you’ve just entered your 20s or have been for a while, you’re probably aware of the many changes about to take place during this decade of your life. This is known to be the prime time to try new things, travel the world and live life to the fullest. But, it’s also the time where many individuals make huge money mistakes, fall quickly into debt and struggle getting out. Continue reading to make sure you don’t end up making these dangerous money mistakes in your 20s. 

Procrastinating on Retirement Savings 

While retirement probably seems too far away to consider in your 20s, it’s one of the biggest and most common money mistakes made. The earlier you start saving, the more compound interest will help you out. Set up automatic savings and don’t touch that money – retirement will be here faster than you think! 

Buying a Brand New, Pricey Car 

One of the easiest traps to fall into is buying a car that costs much more than is necessary. As a new full-time employee, it's easy to be fooled by a paycheck that’s larger than what your college self was used to, but now is the time to be saving rather than spending. It’s normal to purchase a new car post-graduation, but stick to a used car or one that won’t leave you with an enormous car payment each month. 

Living Beyond Your Means 

The temptation to buy unnecessary items is everywhere, especially while you’re young. You might not have kids yet, which can make it even easier to spend money on yourself carelessly. Keep your spending in check and avoid going out to eat often, buying all of the new “in” clothing, getting drinks with friends, etc. There’s nothing wrong with treating yourself every so often, but being smart about how often and what you’re buying is what’s important. 

Falling Into Credit Card Debt 

This mistake is one that can lead to lifelong and life-changing consequences. Always pay your credit card bill on time and in full to avoid the daunting idea of being in serious debt down the line. Using your credit card wisely is important for building a good credit score, too! 

Forgetting the Budget 

Planning a budget and sticking to it might seem like a lot of work. In reality, there are lots of great money management applications available that make budgeting a breeze! Budgeting is the best way to have control over your money and make well thought-out financial decisions. Don’t worry – not all budgets are restrictive and difficult to follow. As long as you have some sort of plan set in place, you’re on the right path. 

When it comes to your future with money, your 20s will either make it or break it. We’re happy to be here to provide you with the services to make your financial future a success. Contact Bank of Louisiana to open a savings account or to learn more about how we can help! 

 

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