Biggest Financial Mistakes
1. Buying a new car
Buying a new car isn’t the end of the world, but it will significantly slow down your path to financial independence. By financing a car with a loan, you are paying for something that depreciates in value every single year, while your payments stay the same. A car’s value immediately drops 10% the moment you drive it off the lot! Don’t be dumb! Buy a cheap used car for now, it does everything a new car does, it drives!
2. Not building your credit
“Credit cards are bad”. No they’re not, they’re as bad as a unloaded gun. The decisions you make with credit determines how your life will go in the future. Your credit score simply shows how trustworthy you are with money. You need it for good interest rates on car loans, mortgages, apartment deposits, job screenings, and more! Get a credit card from wherever you can and pay your balance in full every single month.
3. Not investing
“Stock market is gambling”, “I can do it later when I have more money”, “Too risky”. All those phrases are just pure laziness, As the economy grows, so will the stock market. Just buy in good valued stocks and hold for the long term (10+ years) You need to invest NOW when your expenses are low and time is on your side. A person putting in a $100 a month for 30 years will make significantly more than a person putting in $1000 a month for 10 years. There are so many resources that can help you learn, don’t be afraid, secure your financial future!
4. Spending so much money on restaurants
I don’t know why people do this so much! $10 per meal assuming just for lunch for a entire month is $300 minimum. You can save so much money by packing your lunch. I’m not saying avoid all lunch gatherings, but know that every time you go out for lunch, its money that you could invest with.
5. Invest in yourself
“Billionaire investor Warren Buffett says the very best investment you can make is one that “you can’t beat,”can’t be taxed and not even inflation can take away from you. “Ultimately, there’s one investment that supersedes all others: Invest in yourself”. And what the billionaire says is so correct! Read a book, learn a new skill, exercise, just do something! Don’t be stagnant in a world that is constantly changing!
6. Not saving money
Life happens. Car accident, natural disasters, crime, job layoffs, etc. You need to be prepared for those life situations, so you don’t get screwed by not having any money in savings. You at a minimum need $1000 in the account. However I recommend 3-6 months of expenses so that you comfortably live while you fix your current situation.