Young people tend to be careless with finances and it is something I can easily relate to myself. I was young and did that and I know of all my friends who in their 20’s did that. That rebellious streak and that reckless behaviour was something that was considered attitude and style. Well I am still paying for it. Remembering those times here are the mistakes that I did.
Buying for the Heck of it to Show Off
As a youth I was addicted to tech gadgets and I am still now however I can afford it now and I am careful. Any new stuff and it has to be with me whatever it takes. Getting on the credit card was the norm irrespective of the huge balances that were running on the credit card.
Going to grocery store or retail clothing store meant buying stuff which you wanted not what you really needed. If I needed a pair of jeans, I bought two shirts along with and some Tees. Whether I will wear then or not is something which was to be considered later.
Ever Heard of Savings and Investments?
Ever heard of saving in younger days? No never. Well yes pretend as if you do not even know what is saving. That was the motto. Investing was something alien and never thought the putting money in the bank can even generate money and I will retire comfortably. Retirement was not a reality and hence no savings and no investments. Whosoever is in their 20s or 30s would do well to start right now and use some best investments for young people. I am you will thank me for this years later.
Power of Youth and Not the Power of Compounding
Years later when I used the retirement calculator to see what I will be able to save, it was like an electric shock. Wish I could roll back the times and start investing even with 100 dollars. In those times it was all about enjoying life and hanging out with cool friends and chilled beer. Style was what you did and not saving. If someone bought a new music player you have to go buy a bigger and better one.
Using the bank account for overdrawing and running up huge penalties and interest on that was something that was OK and there was time to pay that later. Well that time is now. I wish I had so many things right at that time. I would have had a bigger corpus by now and would be thinking or retiring much earlier than the age of 65 or 60.
Careless to Smart
That said I am sure there are how many young people who would have made better decisions than I have and that would have made a huge impact on their finances right. If you are in your 20s make sure you make those smart investments and reap the benefits.
Readers, were you careless with your finances when you were young?