Hello, guys

Welcome back It’s great to have you back. 

It’s such an exciting time, isn’t it? To be young free and have not many responsibilities. You certainly feel more energetic than ever and with some money in your pocket, you might also feel invincible. 

BUT!!!!! 

Have you thought about 5 years down the line or maybe even 10 years? It’s okay to be not sure about where you wanna be but if you know where you want to go in life and what you want to achieve kudos to you not many people know that. 

 It’s a celebration in itself.  

But today we are focusing on the small things and habits.  

Your twenties are a time of exploration, self-discovery, and, yes, financial decisions. While it’s essential l to live in the moment, it’s equally vital to plan for your future as well.  

In this article, we’ll take a deep dive into ten money moves you should steer clear of in your twenties and explore the potential consequences and future outcomes of each decision. Grab your financial Glasses, and let’s navigate this together. 

1. Overpriced Coffee and Takeout 

Picture this: you start every morning with a $5 latte from Tim Hortons or Starbucks and grab takeout for lunch most days. Seems harmless, right? But over time, these daily indulgences could cost you thousands of dollars a year. The consequence? You may struggle to save for big life milestones like buying a home or starting a family. 

By brewing coffee at home and cooking meals, you can redirect that money towards an emergency fund or investments. In the long run, you’ll be better equipped to handle unexpected expenses and achieve your financial goals. 

2. Excessive Nightlife Spending 

Trying to keep up with the friends and trying to show off can badly backfire on you. 

Late nights with friends and unforgettable memories are what your twenties are all about I absolutely understand But when your nights out become a financial black hole, it’s time to reassess.  

Overspending on drinks, club entry fees, and midnight snacks can leave you with a hangover of regret – both financially and mentally. 

By setting a budget for your social life and finding creative ways to have fun, you’ll avoid the debt trap and enjoy guilt-free nights out. Plus, you’ll build healthy financial habits that will serve you well throughout life. 

3. High-Interest Credit Card Debt 

Splurging on nice things and buying fancy things can have that dopamine effect and can certainly make you feel better, but do you know what will make you feel even better? 10k saved up or an investment that can give you a passive income every month.  

That’s the goal  

Now you can spend the money you get from those initial investments which will not burn a hole in your pocket.  

Credit cards can be like free cash coming in and can be a great tool. 

Using credit cards responsibly is an essential part of managing your finances. However, accumulating high-interest credit card debt can quickly spiral out of control. The consequences? You may find yourself trapped in a cycle of minimum payments, paying off interest, and never making meaningful progress on your balances. 

By paying off your credit card balances in full each month, you’ll avoid exorbitant interest charges and maintain a healthy credit score. This responsible behavior can lead to lower interest rates on loans and better financial opportunities in the future. 

4. Impulsive Online Shopping 

New gadgets and keeping up with the Jones can make you look cool certainly no doubt about it but it can also make a big hole in your retirement savings and the potential on what you could accomplish in the future like buying your new home in time.  

Online shopping is convenient, but it’s also a breeding ground for impulsive purchases. That momentary joy of clicking “buy” can turn into regret when you realize your hard-earned money went towards items you didn’t truly need. 

Practicing mindful spending and creating a shopping list can help you distinguish between needs and wants. The money you save can be invested, helping you build wealth and achieve financial independence. 

5. Unnecessary Subscriptions 

Tell me honestly how many subscriptions do you have can you even keep track of it? I have personally seen a lot of people with 10 different unwanted subscriptions which they may use once or twice a month which can be very harmful.  

We live in the age of subscriptions – streaming services, magazines, apps, you name it. Subscribing to too many services can lead to subscription fatigue and drain your bank account. Without even knowing you are paying for services that you don’t even use.  

Make your every dollar count.  

By regularly evaluating and trimming down your subscriptions, you’ll free up money for more meaningful experiences and financial goals.  

Remember, it’s quality over quantity when it comes to subscriptions. 

6. Brand-New Cars 

Driving a brand-new car off the lot may seem glamorous, but it’s one of the costliest decisions you can make in your twenties. Trying to look can be tempting and driving fancy cars to show your friends and family that you have achieved can look amazing but think about it that monthly installment that you have to pay could be going to something place better.

You might have to struggle to even meet that payment and have to do extra shifts just to keep up with it. I have seen many people that I know personally with fancy cars but they work 2 jobs just so they can pay their installments now that is messed up in my opinion.  

Don’t fall into this trap.  

New cars depreciate rapidly, and the consequence is that you’ll lose a significant portion of your investment in the first few years. 

Opting for a reliable used car allows you to save on depreciation and insurance costs. The money saved can be invested, helping you grow your wealth and secure your financial future. 

7. Expensive Gym Memberships 

Maintaining a healthy lifestyle is crucial, but it doesn’t require an expensive gym membership. If you are dedicated to your health and physique, then you already know that there are exercises that you can do in a regular gym as well. There is no new machine or spell in the fancy gym that will make you healthier or better just by itself.  

 The consequence of overspending on gym fees is that you may feel financially squeezed without seeing the desired fitness results. You might feel good saying that you go this this gym and other fancy people come to this gym as well but it’s not worth it.  

Exploring low-cost or free fitness options like outdoor workouts or home exercises can save you money and keep you healthy. Redirecting these savings towards investments can lead to financial freedom down the road. 

8. Lavish Expensive Vacations 

Travel is enriching, but extravagant vacations can wreak you on your finances. Going to Bali with friends or some fancy country would definitely be a lifetime of experience and I’m not saying that you should not do it. You should definitely do it but there is a time, especially not the Lavish Expensive Vacations. 

 You might return from your dream vacation to the harsh reality of mounting credit card debt that you have to work extra shifts or even have to take on a new job just to pay for that. 

By planning budget-friendly trips and taking advantage of deals, you can continue to explore the world while maintaining your financial health and make those memories but do it on a budget. Wise travel choices now can lead to more extended and more frequent adventures in the future. 

9. Ignoring Your Retirement Savings 

Retirement may feel like a distant horizon, but your twenties are the ideal time to start saving. People always make excuses by saying things like  

OH  

I have to pay the mortgage first or 

 OH, I am saving for college and That but guys one thing is inevitable you are going to get old and you need to save some money for that unless you have something that is already paying you Passive Income. You might have it in the future no doubt about it but you have to start small and you have to start early.  

 The consequence of neglecting retirement savings is that you may need to work longer or face financial challenges in your golden years. 

By contributing to retirement accounts like a 401(k) or IRA, you’re setting yourself up for a comfortable retirement. The power of compounding means your investments have more time to grow, giving you financial security in your later years. 

In conclusion, your twenties are a pivotal time for building the foundation of your financial future. By avoiding these money-wasting pitfalls, you’ll not only prevent immediate financial stress but also secure a brighter financial tomorrow. Remember, every dollar saved and invested today is a stepping stone toward financial independence and the life you’ve always dreamed of living. Your older self will thank you for your wise choices. 

Take advantage of your free time.