Avoid these blunders now, and set yourself up for a successful financial future.
1 Spending to make yourself feel good
Yes, yes, ‘money doesn’t buy happiness’ and all that … but sometimes it really feels like it does. Remember, that good feeling is fleeting. Try to avoid making yourself feel better at the Topshop sale when you’ve had a crappy day, and rather indulge in a moan-session with a close friend.
2 Not saving
When we’re young, having just enough money to pay rent, buy food and go out seems like more than enough. But planning for an emergency will help you at some point – one day you’re going to need it for a big (and possibly unexpected) expense.
3 Being too eager to move out
After spending your whole life living at home, it’s understandable that you want to escape and do your own thing pronto – but are you really ready for it? It’s always worth considering ‘toughing it out’ at home for another few months. The more you’ll have saved when the big move does happen, the easier your solo slumming will be.
4 Not setting any long-term financial goals
You probably have a few short-terms, like paying rent on time. If you can manage this, you probably have enough money to set a few long-term goals, too. Decide on an amount you want to have saved after a year and work towards that.
5 Lacking any sort of budget
The word ‘budget’ crops up in every financial read, and there’s a good reason for that. Most of us don’t actually write down a budget and stick to it. Having a proper budget could stop you from dipping into your savings. Stick to it: it could change your life.
6 Spending too much money on things that aren’t necessary
Can you really afford the new iPhone or the expensive hairstylist? Are you sure? It’s obviously important to treat yo’self once in a while, but many of us make the mistake of overspending on luxuries.