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 wealthyâŚ.and itâs something everyone can do.  This is important no matter how old you are, but especially when youâre young.  You can do this by either increasing your incomeâŚor avoiding financial mistakes (like over spending for example).  Since, pretty much every other video on this channel focuses on how you can make more moneyâŚtoday wereâ going to talk about 7 major financial mistakes to avoid when youâre young  All 7 of these things are mistakes Iâve made myself and want to warn you to avoid. Feel free to use this as a checklist in your own lifeâŚ.and if youâre making any one of these, make sure you address it.  #1 is one weâre all going to be guilty ofâŚ.and thatâs having too many subscriptions.  Everything is a subscription payment these days. And alone theyâre all super cheap. $9 per month hereâŚ.$10 per month thereâŚ.$16 per month hereâŚ.and the list goes on and on.  It doesnât matter if you can âaffordâ all these subscriptions. Thatâs not the point. The point is the opportunity wasted by starting off every month allocating a portion of your money externally.  That means you donât need Netflix, hulu, amazon prime, spotify, hbo, apple music, etc⌠Iâm not saying get rid of all of your subscriptions. Iâm simply saying maybe itâs time to ask yourself how much you really use each one.  The major issue with this is not that you canât afford them all most likelyâŚâŚitâs usually the second, third, and fourth order consequence of it.  For example letâs 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 donât then put that money into investments over the next year or so. Which, third order consequence might mean that you donât accrue compound interest on it for the next few years or decadesâŚ.which ultimately, as a fourth order consequence, might mean you lose out on hundreds of thousands of dollars when youâre older, as your investments mature and continue compounding.  Now, that might sound like an extreme example, but trust meâŚitâs not that out of the ordinary.  So, key point #1 is to make sure youâre not wasting money on subscriptions youâre not really using every month.  That leads me into point #2 which is not investing early enough.  Like we just covered, the power of compound interest is CRAZY. Weâve all undoubtably heard this advice before.  Yet, most people that hear this advice let it go in one ear and out the other.  Iâm not going to insult your intelligence and explain what compound interest isâŚ.if you do by change not know what it is, then just google it.  But that is by far one of the biggest financial mistakes I madeâŚnot investing early enough. I donât care if youâre 15 years old, if youâre 20, 30, 60, whateverâŚ. START NOW!  The next mistake to avoid is buying âthingsâ.  Iâm not saying donât spend money and donât buy anything. On the contrary, I think a lot of good comes from spending (both personally for youâŚas well as the economy as a whole), but that said most âthingsâ are a complete waste of money. Etc........
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