MEN MAKE FINANCIAL MISTAKES AND YOU NEED TO AVOID TO THEM IN YOUR 20S
Hello guys, Welcome back to Men’s Dream lifestyle. And today’s blog is extremely important for you guys who are in your 20s honestly. This blog is great whether or not you’re in your 20s. I think it’s just something that needs to be talked about it’s something that you guys need to keep your minds turned into. I’m going to go over some big financial mistakes that most people make especially in their 20s and I want to make sure that you guys are not making these mistakes.
MEN'S MAKE FINANCIAL MISTAKES
A POVERTY MINDSET
The first MEN’S MAKE FINANCIAL MISTAKES that most people make especially in their 20s is having. What we call a poverty mindset. A poverty mindset is a mindset that people develop over time based on the belief that they will never have enough money. When you have a poverty mindset you trick, yourself to believe that.
It’s too difficult to make money to get ahead in your career afford a vacation and afford nice things in general. You feel guilty as soon as you buy something you strongly dislike rich people. Even though you wish you had what they have. You start to think small instead of thinking big that is the poverty mindset. But guess what you can change that mindset. You should be in control of your mind and with practice, you can re-engineer how you think.
AN ABUNDANCE MINDSET
Let’s talk about the opposite of the poverty mindset which is the abundance mindset. Which is a belief that there’s plenty of everything for everyone and lots of time to get it. So think of it this way. We are what we believe in right. So when we know we are full of energy, passion, inspiration, and desire no one can say otherwise that is who we are. So when you know that you can do it that you can make it that you can grow in your career that you can afford nice things that are become. Don’t let the poverty mindset creep out.
NOT INVESTING YOUR INCOME
The next MEN’S MAKE FINANCIAL MISTAKES that a lot of people make is not investing a portion of their income. Spend some fun buying nice things but be smart you have to invest some of your money and think of it as investing in your future self. I know that sounds boring I’m like ah old who cares about old you know I’m saying like how about now young he needs it now. I get I completely understand that line of thought but at the same time be smart about this and be young and have some fun.
You know he can have the percentage of that but give a percentage to all the as well. That’s how I think of it in my head I’m like old like. He who knows how he’s going to be later on. Let’s make sure that he’s okay though right. That’s something that you can do by investing some of your money in some of your income. But the one thing that I will say is that you shouldn’t invest blindly that’s another mistake that people make. Because at the end of the day you have to understand that investments can be risky right. Depending on your investment portfolio we can definitely be really risky.
If you’re just getting started and investing your hard-earned money. You don’t want to invest randomly in stocks or companies that you don’t know. You know and you’re like I think this will do well but I have no idea that is why? I highly recommend you get professional help. You manage your own money the same way. That you could build your own house but why would you when you could have a dedicated team of professionals doing that for you.
NOT BUDGETING YOUR INCOME
The next MEN’S MAKE FINANCIAL MISTAKES that you make is going through your life especially your young age your teenage years your early 20s without learning. How do budget your money properly right. Then when you get older you start to make a little bit more money hopefully. But the problem is you don’t know how to budget it. So you continue to spend everything that you make and at the end of the day you’re not investing anything, you’re not saying anything, you’re not putting any money away for retirement plans and you’re left with nothing. So that is not good from an early age and I mean today for you reading this learn how to budget your money properly.
You know there’s this rule obviously it depends and it varies for everyone but the 50, 30, 20 budget rule. That means that 50% of your monthly income goes to your necessities housing, utilities, transportation, food, etc… Not the fun part. But 30% of your income goes to the fun part you know it’s like your personal expenses the clothes that you’re looking at the products that you want to purchase right. Those fun things there’s nothing wrong with treating yourself once in a while.
That’s why 30% of your income can actually go towards that. Then 20% should be your savings. You know whether you’re saving for a retirement plan or you’re investing. That money or actually just saving in the bank so that you can pay off debt. That you still have or just to pay off debt. That 20% is money that you should not touch. That should go towards debt investments savings that’s what you need. So the 50, 30, 20 rule is definitely it’s pretty generic but it works for a lot of people and it’s a great place to start.
NOT HAVING A RETIREMENT FUND
The next MEN’S MAKE FINANCIAL MISTAKES is actually not having a retirement account sooner. I know I made that mistake I didn’t start a retirement account until and honestly, I regret it. You know even if I was just putting like 10% away. At the time when you’re getting paid 10%, it’s really not that much you don’t notice it. You know you just budget for it properly. But if you go back now 10% of my income. You know from 14 when I started working to 26 that would have been a pretty good chunk of change and I missed out on all of that.
All of that could have been applied to my retirement plan and unfortunately, it just did not happen. Because I didn’t know that’s what I needed. I didn’t have anyone online telling me hey you should be doing this anyone give me that type of advice. Especially someone who you know is an immigrant came here and my family didn’t know anything about this. So I had to learn it myself. The personal experience put money away in your retirement plan it doesn’t have to be a ton of cash a ton of money make sure that. You’re still living an amazing life but focus on your future as well.
CREDIT CARD MISMANAGEMENT
This next one is huge I’ve had problems with this my friends have had problems with this uh this is something that can be really bad. If you let it go for too long and that is paying too much interest on credit card purchases right. A credit just seems like monopoly money sometimes. It’s just this piece of plastic or metal and you go over there and you give it to someone and someone gives you things for it and it’s crazy. But at the end of the month, you got to realize you got to pay for those things.
Sometimes it seems so easy so practical nowadays you can just it online just type a few things and you get shoes, you get clothes, you get whatever you want but at the end of the month, you have to pay it off. Otherwise, it doesn’t matter. If you got it on sale because you’re going to be paying more in interest.
Every time you swipe your card you are essentially borrowing money from that card issuer and if you don’t pay it back the interest grows and it grows and it grows your credit goes down and then all of a sudden you have a huge bill that you have to pay off that is not good.
STUDENT LOAN DEBT
The next one and this is huge is to be smart with your student loans right. Don’t accept student loans that are more than what you need think ahead of how you’re going to pay back your debt before. It’s too late there’s no secret formula here for being debt-free when it comes to student loans. What I would say though is just don’t go overboard. Don’t take more than we need. If you’re like oh maybe I just I’m to take I’m going to get some extra cash right. Only take what you need because that is debt that is a huge debt. So make sure that you’re not a part of that.
If you’re going to college soon if you’re going into debt soon go to school which by the way is a great investment right. Just make sure that you’re doing a lot of planning beforehand otherwise you’re going to be drowning in debt and that is never a good place to be in. Guys make sure to follow in tips and you have a better life and share with you’re friends thank you, guys.