Blog / 4 Financial Missteps Young People Should Avoid

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Young couple examine their finances with trepidation

The world is a great big place, but sometimes your wallet feels too small to go out and see any of it. Other times, you might feel like you're on top of that world and have nothing to fear when it comes to finances.

Confidence is a fantastic feeling, but it's critical that your money situation reflects that confidence honestly. One simple mistake could start the falling dominoes that lead to financial ruin. Don't let that happen -- instead, learn from this blog post about 4 common mistakes that you should never make as a young person!

1. Living Like There's No Tomorrow

People love to talk about the value of living your life to the fullest. In fact, you've probably heard the phrase, "Money doesn't buy happiness."

Maybe money doesn't literally purchase happiness from a happy store, but you'll feel like a million bucks after writing the last check to pay off your eventual mortgage.

So don't spend your days frivolously spending everything in your wallet on fun experiences. Be smart, and spend your money on what really matters.

2. Forgetting to Save or Invest

This point has a lot to do with the last one -- if you don't think ahead about the future, you might not have much of one.

That's why it's so important to have a smart budget. Even if you're still in your early 20s, that extra money burning a hole in your pocket might go to more use if placed in a savings account.

And remember, just because you're a young kid from Palestine, TX doesn't mean you can't start investing in stocks or even something more interesting like crypto-currencies!

3. Only Making Minimum Payments

If you've taken out a loan of any kind -- an auto loan, a home loan, or a personal loan from a lender like Atlas Credit -- one of the smartest things you can do to help your wallet, your credit score, and your future is to pay more than the minimum payment.

The minimum payment is really more of a suggestion. It's the bare minimum of what you could accomplish. But even by paying just a fraction higher each month, you'll be that much closer to paying off your debt.

4. Not Communicating with Your Family

This point applies to any important person in your family. Whether you have a spouse, still live with your parents, or have a frugal old aunt, communicating with them can be unbelievably constructive.

First, it helps you to voice your own concerns about your money issues. Second, the feedback you'll receive will most likely help you put your situation into context. Older family members especially have been through far more financial experiences than you have, so learning from them can be invaluable.

And third, you might find a solution to whatever money issues you have that you might never have considered. For instance, if you live in Austin, TX or Dallas, TX, a personal loan from a nearby lender like Atlas Credit could be just the quick fix you need to set your finances back on track. Contact us today to learn more!


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