“5 Money Mistakes that Young People Make in the UK”
“5 Money Mistakes that Young People Make in the UK”
Being young in the ’20s the decade where you figure out life. Dealing with finances completely for the first time on our own, Personal loans, Mortgage loans, education loans, etc. The learning stage is to manage your credit and pay your bills, by taking student loans & trying them to pay off.
Your saving and spending habits will stay with you into your 30s beyond.
It's better to out stressed about money and swim yourself into debt. Don't do these 5 Money mistakes that young people make in their early 20’s
Deferring repayment of a student loan
Deferring repayment of a student loan by several years not because you didn't want to deal with the payment but even though able to put the payments on the back burner and enjoy my money.
A young mind failed to realize at the time was that for every month and year that you did not make a payment interest continued to accumulate.
So, by the time when you start making payments is several thousands more than the original balance now provisions like deferment and forbearance are there for a reason.
so if you can afford your payment by all means take advantage of this help because it's going to keep your account in good standing until you're in a better place financially however if you can afford to start making payments shortly after finishing school.
definitely consider doing this because you're able to build those payments into your budget before you take on additional expenses plus the sooner you start knocking out your student debt.
Not Investing
you don't get taught about investing and investing is massive because if you have ten thousand saved up and five years down the line you do nothing with that ten thousand.
it's still going to be worth ten thousand investing into ETFs into individual stock picking into
indexes it doesn't have to be the most aggressive things it can be something that just returns one two three percent a year even property.
Because you don't invest in a few year's time it's still worth 10 thousand if you invest and you get a good return on your investment if you have 10 000 in your bank account you invest that into something and that gets a 10 return a year every year then in a few years that does really start adding up and that's not including if you start putting even more monthly payments into it so it does really do pay to install investing and we are a very lucky nowadays because investing platforms are very easy to use and also the fees on them are dirt cheap so you can pretty
much start with a hundred pounds.
Using debt to fund holidays
A Big Mistake using debt to fund holidays so in this situation actually using credit cards would be using your student overdraft to fund holidays.
you're currently at university or you're just graduating do not make this mistake trust me and if you do feel tempted on personal loans, short-term loans and personal loans on Bad credit, etc whatever it may be will make you Financially weak.
Not learning how to cook
you can absolutely enjoy food outside of the house and still be good with money and still be frugal but the key here is really moderation so this isn't something that you want to do every single day. Because eating out every day or even every other day can really break your budget daily spending on food might not seem like a big deal but the cost can add up.
Forgetting to budget
when it comes to budgeting that is really personal finance and some people might feel that this is a little too obvious but as soon as you start earning money you have to start tracking what's coming in and what's going out on a regular basis to ensure that you're spending a reasonable amount on both your needs and wants because overspending in either category means that you might not have a lot left for savings and debt repayment and the reason why you want to start early is that changing the way you manage money becomes a lot harder as you get older so you really want to develop these good habits while you're young now.