5 Financial Mistakes Yuppies Make

By BankBazaar | February 5, 2017

5 Financial Mistakes Yuppies Make

In the early eighties, Joseph Epstein coined the term ‘yuppie’ to refer to the ‘Young Urban Professional’. You see, a ‘yuppie’ today is anyone and everyone who has graduated from college, has a well-paying job, lives in a house of his/her own, owns a bunch of Credit Cards and isn’t afraid to use them. Sounds familiar?

Yuppies in general, are known for their flamboyant lifestyle, their outspoken nature and their audacity to live without savings. The thing about yuppies is that they seem like a bunch of people who want to live it up without worrying about the next day.

While that might be a good approach to life in some ways, it can also lead to financial jeopardy as well. You see, yuppies are constantly looking to make it big and make it fast.  They can get easily demotivated when they don’t get what they think they deserve.

 

Additional Reading: 8 Financial Strategies To Get Rich In 2017

A typical yuppie can be found hooked to his/her gadget, drinking coffee bought from Starbucks, and surviving on cheese bagels.  Yuppies are generally ready to pay a premium for nice things.

If a yuppie isn’t careful, however, he or she could risk falling into the unfortunate ranks of the Urban Poor. Maxing out their Credit Cards and paying huge EMIs on things they own but don’t need are just a few examples.

Additional Reading: Credit Card EMIs – Tread With Care

While there isn’t anything drastically wrong with being a yuppie, there are a few things yuppies often forget when it comes to their finances. They sometimes make easily avoidable mistakes.

Additional Reading: 9 Worrying Signs of Money Mismanaged by Millennials

Living From One Paycheck to Another

Despite their outward appearances and their flashy lifestyles, some yuppies live from hand to mouth. More often than not, ‘image’ is everything to them.

Not being able to maintain a lavish lifestyle is their biggest nightmare. In the bargain, they are forced to pay heavily for things they can’t afford. Towards the end of the month, they are left with only the hope of getting their next payslip.

Additional Reading: A Higher Income Alone Won’t Solve Your Money Problems

Swiping Left, Right and Centre

Although Credit Cards are a big hit among yuppies, what they forget is that swiping these cards is costing them money. Because of the way Credit Cards work, you don’t always see hard cash leave your account instantly. If you don’t keep track of expenses you could end up maxing out your credit limit and that’s a big no-no.

Additional Reading: Tips to Deal with Credit Card Debt

Lack of Savings

Spending is one thing, but the lack of savings is another. Many yuppies don’t believe in saving money or probably don’t consider it to be important.

They often deplete their bank accounts each month and have nothing left for a rainy day. The lack of savings can have severe repercussions financially, should a yuppie need hard cash for an emergency.

Additional Reading: How To Build An Emergency Fund

Leave it for Later

Most yuppies have this attitude, especially towards making payments. Late payment fees and defaulting on payments not only decreases your Credit Score, but also piles up your dues. And before you know it, you’re caught in a vicious cycle of debt.

Additional Reading: 6 Terrible Consequences of Procrastinating Credit Card Payments

Ignoring Advice

Call it their ‘know it all’ attitude, yuppies think they can get answers to anything and everything on Google. But, what they often forget is that wisdom also comes with age and experience. And, when an elder, such as a parent, gives them sound financial advice, a yuppie will more often than not choose to ignore it.

Additional Reading: Would You Take Financial Advice From A Robot?

Are you a yuppie and find yourself identifying with this article? Leave us a comment and let us know what steps you plan to take to overcome these mistakes.

The views expressed here are solely those of the blogger in their private capacity and do not in any way represent the views of the Legal enforcement authority or any other entity. The user of this information is advised to consult experts in the domain for concluding any opinion or course of action.

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Category: Money Management

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