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Common Money Mistakes to Avoid in Your 20s
Don’t want to make common mistakes with money? Read to the end so you don’t make the same mistakes as me.
What you need is self-awareness with your money so you don’t make small mistakes that lead to big financial issues later in life.
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How to build small self-awareness habits.
1. Spending More Than You Earn
Problem
This is the biggest trap—lifestyle upgrades every time income increases. You feel like you’re working hard but never saving anything.
Solution
Track your monthly expenses; you can do it on Excel sheets to get an idea. But if you feel this is a hassle, I have a tip you can use.
Rather than noting down every transaction in Excel now and then, take out a bank statement of the year you spent on things.
You will need to categorize your personal groceries, your Starbucks coffee, or your EMIs and loans.
You will know your annual expense goes into groceries and your shopping in a particular season, so you calculate your annual expense and then divide it into twelve months and you get your monthly expense
