Ok hands up all of you who had dreams of saving BIG money this year? Nooooow, hands up all of you who have actually saved big money this year? HA.
Kelly Long Financial Planner, says "that these days many young people are anxious to know if what they’re doing is what everyone else their age is doing. Call it FOMO (fear of missing out), call it peer pressure, call it what you will, but I think that in most areas of life, people often just want reassurance that what they're doing is all that they can and aren’t screwing up their future prospects in life too much by living in the present."
Does this sound like you?
If it does, or if maybe you're sitting here wondering where the heck all of our money might have gone this year (and also maybe last year and the year before that…) we thought we’d pop together a simple cheat sheet to open our eyes to some common money mistakes we all make - so maybe we can refocus and leave 2017 with a cash filled bang! (Or at least with an extra $20 in the back pocket of our jeans.)
Trying to Pinterest your apartment
Sure Pinterest is fun and pinning all of the amazing things you can’t really afford is even funner. However, when you spend a chunk of time sitting on social media wondering why your apartment doesn’t look like the one on your Pinterest board and then buying things you can’t afford just to kind of make it look like it does; it will end in disaster. Sure you might have a fancy house with all the trimmings but how much did it really end up costing you? And how long will it take to pay it off? Also; if you’re renting, is it really worth the spend?
Not saving for an emergency fund
Everybody needs an emergency fund. Fact. So if you haven’t got a few extra dollars saved away for a rainy day then it might be time to get onto that - stat. You see, you never really know when you might need an extra $500 for an emergency. And a real emergency. We’re not talking about your ‘I need that bag emergency!’. Hint: please don’t dip into your emergency fund.
Not setting financial goals
Saving is a lot easier when you set yourself goals. Goal setting will allow you to stay focused and measure your progress while you’re at it. Yet, when we’re in our twenties somehow setting ourselves financial goals seems a little hard. Maybe it’s because we can’t see that far into the future? Or maybe it’s because where we thought we’d be in our mid-twenties as a teen…is nowhere near where we actually are in real life. Watevs. If you’re really set on saving money, now is the time to get focused and set a goal. You could even make it a goal for something fun like that bucket list trip to Europe you’ve had your heart on.
Living off your credit card
Living off your credit card is the worst and it’s also quite possibly one of the biggest money saving mistakes you will ever make. In fact, you will never save any money if you keep living your life this way. Debt is actually one of the largest financial issues facing millennials these days. And even though adding that extra order of avo toast to your card, along with ten rounds of drinks and a couple of salon appointments doesn’t seem like much, when it’s all spread out over a period of time, it all adds up. With interest. Your past purchases will come back to haunt you. We promise.
Pretending ignorance is bliss
Hate checking your bank account? Us too. However, keeping close track of your expenses is the key to staying financially balanced. Sure, it can be emotional at the best of times. Especially when you realise that maybe you've spent well above what you were meant to have spent in one week (ooops). However without actually checking your bank account you’d be more inclined to keep spending instead of reigning it in. Think about it.
Images: Pinterest, Words: Yadira Galarza Cauchi
Tell us, what are some of your money saving tips?