Managing money is a rather difficult task for most young, single folks. Hence, we’ve identified six common mistakes that you should steer clear of.
While being single is indeed the most wonderful time in one’s life, it is also the time that one makes the most mistakes. While we can’t offer you life lessons, we can surely give you some really important money lessons so that you don’t mess up your financial future.
When you’re young and single, you hardly have any financial responsibility. Therefore, there is a good chance that you’ll be taking money matters rather lightly. Well, you’re young and you’ve all the right to do whatever you like with your money. However, let us make this clear to you – this is the right time to secure your financial future. We get that the concept of money management is quite alien to you, but then again that’s why we are here! We’ve identified six common mistakes that most single folks have made (from our own experiences and those we know!). Here you go!
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#1 Not Tracking Your Expenses
One of the biggest mistakes that most single folks make is not tracking their expenditures. Since they don’t have any financial obligations, it is easy to spend money without realising how much you’re spending. That’s why most singles find themselves out of money towards the end of the month.
If you want to avoid running out of cash by the end of the month, we’d suggest that you start keeping track of your expenditures. Keep a journal or maintain an excel sheet. Or you could also use of one of the many expense tracking apps available.
Ask any financial advisor and they’ll tell you how important it is to create a budget. This will not only help you keep a track of your expenses, it will also help you plan your expenses such that you don’t spend beyond your means.
#3 Not Saving For The Rainy Days
You never know when life will throw a curve ball at you. And it’s best that you are prepared, at least financially, for it. Else when such contingencies knock on your door, you’ll end up borrowing credit, which would eventually lead to a lot of debt.
#4 Spending Too Much On Your Lifestyle
Regular visits to pubs, fancy restaurants, movies, malls, etc. just to keep up with your friends and colleagues can seriously hurt your wallet. We aren’t asking you to give up these little pleasures in life. All we are asking is that you gain control over your lifestyle.
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#5 Not Investing
Did you know that the best time to start investing is when you’re young and single? We can give you two reasons why. Firstly, you have enough and more time to build a really huge corpus by the time you hit your 40s. And, secondly, the fact that you don’t have any financial responsibilities means that you can invest a decent chunk of money and take more risks which could fetch you higher returns. So, what’re you waiting for? Start investing, already!
#6 Not Making Payments On Time
Quite a few folks have revealed that they used to neglect making their Credit Card and loan EMI payments on time during their single days. Some have even revealed that they used to be so broke that they knowingly never made their payments. Well, neglecting your payments can lead to high penalties and it can affect your credit profile negatively. Lenders will lose their trust in you and it could become extremely difficult for you to avail credit in the future.
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