5 Financial Mistakes I've Made in My Early 20s | AVOID THESE AT ALL COST
It’s about to get really deep and personal in here.
But let’s begin, I mean we are all friends here, right?
And if we can all help each other with our own experiences, shouldn’t we share?
Today, we are going to be touching on the important topic of money management.
And boy do I suck at it.
To be honest, I’m currently in about 20k credit card/ personal loan debt. I was one of the lucky ones who didn’t graduate with student loan debt but ended up racking up debt in so many other ways. So, for all those post-grad students coming from college or even those who recently graduated from high school. I have some mistakes I would like to share that I made in my early 20s that I’m currently trying to get myself out of. In hopes that you learn from my mistakes and avoid repeating them.
So let’s get started.
Signing up for credit cards and not knowing about financial literacy - The worst mistake you can make is getting into something without reading the fine print & understanding the purpose behind what you’re doing. What are you using the credit card for? Are you able to afford the credit limit that you’re being given? Including monthly payments, etc. Do you understand how credit works? Utilization rate, etc. If not, please do your research before signing up. Your future self will thank you.
Not saving or investing - Honestly, after I graduated college and received my first big girl check. I was all in the game of spending and treating myself. If i would’ve took more time out to get into HYSA (high yield savings account) or stocks (Robinhood,etc) then my money could have also been working for me. Trust, coming from a mama of one and pregnant with second, those hospital bills do pile up and having a savings and investment account could have come in handy.
Using Cash advances/ Personal loans - Unless it’s a dire emergency and you’re able to pay the money back. I would never recommend taking one out. When I moved from my first apartment in San Antonio to my second apartment. I took out some loans thinking I would be able to pay it back and I’m still paying for that mistake 2 years later. So, don’t. If anything, I would rather you borrow from a family member or friend, if all else fails.
Not following my budget - It’s easy to come up with a budget but it’s harder to follow it through. I still struggle with this at my big ole age of 27. If something I want comes up, I will switch my categories around or spend more than allocated. All that does is cause you to be in an even bigger hole the next paycheck. So, learning discipline and practicing it is key to successful money management.
Trying to keep up with society’s standards - You would be surprised to know that the average American does not have $1,000 saved in case of emergencies, which means if anything were to happen, people are utilizing credit cards and loans to pay. This will cause a major headache later. It’s hard to comprehend that others are in debt as well and probably are using that to finance their lives. So, the next time you see someone living their best life out loud, just know that it might not be what it looks like. America runs on credit. If you think you’re the only one struggling, that’s a lie. But in order to get from under it, you need to incorporate new habits and stop listening to the outside noise. OR make more money. Whatever works!
If you don’t learn anything else from me, learn this. Either you make more money, or you downgrade your lifestyle. Either or works to ensure the cycle of financial poverty does not continue. Make better decisions. Find a path that works for you and stick to it.
Lastly, your habits will be your downfall, so even if you do make more money, if you' don’t know how to manage it, you will still end up in the same situation. So, change your habits.
And if you need help, ask for it.
Let me know in the comments what has helped you get out of debt or what you’re currently doing to get out of debt and is it working.
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Tasha Battle (@tashathompsontv) • Instagram photos and videos