7 Money Mistakes to Avoid When You're Young
7 Money Mistakes to Avoid When You're Young - Taking control of your finances is one of the quickest and easiest ways to become more wealthyā¦.and itās something everyone can do. Ā This is important no matter how old you are, but especially when youāre young. Ā You can do this by either increasing your incomeā¦or avoiding financial mistakes (like over spending for example). Ā Since, pretty much every other video on this channel focuses on how you can make more moneyā¦today wereā going to talk about 7 major financial mistakes to avoid when youāre young Ā All 7 of these things are mistakes Iāve made myself and want to warn you to avoid. Feel free to use this as a checklist in your own lifeā¦.and if youāre making any one of these, make sure you address it. Ā #1 is one weāre all going to be guilty ofā¦.and thatās having too many subscriptions. Ā Everything is a subscription payment these days. And alone theyāre all super cheap. $9 per month hereā¦.$10 per month thereā¦.$16 per month hereā¦.and the list goes on and on. Ā It doesnāt matter if you can āaffordā all these subscriptions. Thatās not the point. The point is the opportunity wasted by starting off every month allocating a portion of your money externally. Ā That means you donāt need Netflix, hulu, amazon prime, spotify, hbo, apple music, etcā¦ Iām not saying get rid of all of your subscriptions. Iām simply saying maybe itās time to ask yourself how much you really use each one. Ā The major issue with this is not that you canāt afford them all most likelyā¦ā¦itās usually the second, third, and fourth order consequence of it. Ā For example letās say you spend $120 on several different subscription services each month. The first order consequence is losing the $120. But the second order consequence might be that you donāt then put that money into investments over the next year or so. Which, third order consequence might mean that you donāt accrue compound interest on it for the next few years or decadesā¦.which ultimately, as a fourth order consequence, might mean you lose out on hundreds of thousands of dollars when youāre older, as your investments mature and continue compounding. Ā Now, that might sound like an extreme example, but trust meā¦itās not that out of the ordinary. Ā So, key point #1 is to make sure youāre not wasting money on subscriptions youāre not really using every month. Ā That leads me into point #2 which is not investing early enough. Ā Like we just covered, the power of compound interest is CRAZY. Weāve all undoubtably heard this advice before. Ā Yet, most people that hear this advice let it go in one ear and out the other. Ā Iām not going to insult your intelligence and explain what compound interest isā¦.if you do by change not know what it is, then just google it. Ā But that is by far one of the biggest financial mistakes I madeā¦not investing early enough. I donāt care if youāre 15 years old, if youāre 20, 30, 60, whateverā¦. START NOW! Ā The next mistake to avoid is buying āthingsā. Ā Iām not saying donāt spend money and donāt buy anything. On the contrary, I think a lot of good comes from spending (both personally for youā¦as well as the economy as a whole), but that said most āthingsā are a complete waste of money. Etc........
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