Money mistakes young professionals make

By Drum Digital
21 August 2014

Here are some of the most common mistakes made by young people regarding their financial affairs.

Starting your career is a daunting enough step, considering the responsibility that comes with taking charge of your finances only adds to the pressure.

Young professionals often make financial mistakes that affect their future  without realising this.

Here are some of the most common mistakes made by young people regarding their financial affairs.

I don’t earn enough to save

No matter how little you earn, you should try to save a portion of that income. Set up a savings account that has money deposited into it as soon as your salary comes through. Don't spend and then save from what's left - save and life off what's left.

I don’t need insurance

You really never know what may happen. Have money in case of emergencies and save yourself the emotional and financial strain.

Retirement is for old people

It's better to save for your retirement while you're young and free of the responsibilities that will later come with having family as dependents. The earlier you save, the more you're able to earn later.

I will pay off my student loan later 

The longer you wait, the more interest that loan gains. Get it out of your way and avoid unnecessary debt after settling it.

I need to save for my children’s education

First things first, don't put the cart before the horse. Ensure that your current financial status is all set ad maintain that for a while before thinking about children you don't have yet.

I only need to think about finance when I have my own family

The older we grow, the more complicated our financial lives become. Mastering the art of budgeting, saving and investing while young can help us tackle the more complex monetary challenges we may later face.

I can get away with skipping a few credit card payments

This is the quickest and easiest way to start the unhealthy habit of losing money and losing control of your finances.

-MONEYMARKETING

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