Money Mistakes I did in my 20’s that You Shouldn’t Do

Living paycheck after paycheck is one of the worst feeling I’ve ever felt back in my 26’ ish and 27’ ish.

Upon contemplating what actually happened in the past, I realize the things I did in my 20’s about money that is an absolute no no and I wish I didn’t do. 

1.       Spend All Your Money to Help Family

Helping your family might probably the ultimate goal you have upon finishing college.

After all your parents have given you all the possible advantage that you can get so you can get ahead of life, so helping your family back is the soundest thing to do next.

There is nothing wrong with helping your family.

But helping your family in the right context will make you and your Family both a winner in the end.

What do I mean about that?

What typical Filipino families wanted is just a comfortable life and something to brag about to other people, like newly built kitchen or new sala set, a huge tv probably or a car.

(excuse my rant but if your family sounds like mine please share this article up)

And when you are just starting your career, your family might force you to engage on loans and pay up for the things they want like 50-inch Television and the list goes on.

Or maybe they are waiting for your bonus too and already have plans what to buy for your 13^th month.

The problem with that?

          

·         Read: Realizing I am Financially Illiterate all My Life

You are losing all your opportunity to raise money for a possible start-up like business or investment and spending all your money will trap yourself on the corporate job waiting for paycheck after paycheck.

At your 20’s, even if you still don’t know what you wanted to do in life, having a fund set aside in pursuing your passion will give you a great advantage when the time comes when you actually wanted to do it.

So please save up a small part of your money and make it hidden from any of your family members.

Another great tip I learned is when your parents seem to know a lot about money do not let them decide for your money.

Even you make mistakes about managing your own money what’s great about that is you get to learn an invaluable lesson for yourself that will make you a great decision -maker in the future.

Making the right decisions

 are a product of wrong decisions in the past!

Sounds great, right?

2.     No Plans to Grow Your Money

You already saved up a good amount of money.

So what’s next?

Savings, in my opinion, should be an avenue to make more money. Do not let your savings sleep in the bank and assess your strengths and weaknesses and decide which money-making machine will make your richer.

Do you want to be a billionaire like Warren Buffet thru investing.

Or do you want to be a businessman like Manny Villar who is now the wealthiest Filipino today.

Many graduates complain that it is difficult

 to get a job these days despite having a diploma.

The solution is to create your own job

 and create jobs for others.

Be an entrepreneur! – Manny Villar

Or be one of the successful Youtuber’s like Anne Clutz.

Savings should be an avenue for you to make more money either when you're sleeping (like investments) or active business.

Like I said if you are a newly graduate and still don’t know what you want to do in life, just increase your savings so, when the time comes to actually make the jump and start your dream, you have a kickstart savings by your side and can execute your plans right away!

3.     Buy Things That Is Considered Investment But Actually Isn’t

Ever heard to buy gold because it's like an investment?

Yes, that might be true if you sell it right away and get a profit out of the sale.

But if you buy a piece of gold jewellery and hid it in your house, what actually happens is, your money goes out from your wallet.

Money out and that’s it.

·         Read: Why Does Low Income Earner Reaches Financial Freedom Way Slower Than The Others

There is nothing wrong of owning a piece of jewellery but do not mistake the term investment with spending money to buy things, versus spending money to make more money.

That is totally different.

Buying a piece of gold and selling it after 10 years might have higher value but does it solve your financial goals?

Does buying a piece of necklace and selling it after 10 years will make you financially successful???

If not, then find other ways to make more money and stop mistaking an old advice a good advice.

Discern and learn more.

Final Thoughts

People in their 20's are perceived as a clueless stage in life especially with regards to personal finance.

But it doesn't have to be always like this.

Money mistakes can be prevented by following good examples. Maybe from your relatives or just like me who learn a lot about money by following personal finance advocates over the internet.

Try to look up a person that you most likely wanted to become and try to copy how did they acquire financial success.

That is it for now.

Thanks for reading all the way!

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