The 4 WORST Money Traps Most People Make In Their 20s & How To Avoid Them

In this video we’ll be talking about the 4 WORST money traps that you must avoid in your 20s.

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Let us know in the comments: what money mistakes you've made in the past?

(0:00 Intro)

I wish I knew these things before I was 20 because if I did my financial life would be so much better off right now.

But look, I’m 22 right now and I don’t claim to know everything about money…

but I have made many mistakes with my own money that I wish I haven’t made and hopefully you can learn from my mistakes and not make them yourself.

And after making these mistakes, I became obsessed about managing my money and I’ve read tons of articles and books and watched countless videos from people who are over 20 and who’ve shared their personal money mistakes that they think everyone should avoid.

And I’ve compiled them into the # biggest mistakes to avoid based on what I think you should avoid if you want to be financially successful by the time you’re 30...

So that you can have more financial freedom when you’re younger to do more of the things you like or buy the things you want.

And if you just avoid the first mistake that I’m gonna talk about here, you’re gonna be way better off than like 96% of the population when it comes to personal finances, money and net worth.

MONEY TRAP #1: Not having a financial plan or budget (1:25)

Maybe when you hear the word "budget" some of you might roll your eyes and think that a budget never works because its too rigid and you’re never gonna stick to it but hear me out for a few seconds here.

If you don’t know where you want to go, then it doesn’t matter how much money you save or how much money in your bank account.

If you don’t have a plan with regards to where you want to be 3, 5, 10 years from now, it is almost impossible to be good with your money.

If you know me or if you’ve watched my previous videos you’ll know that in the past I would always blow my money as soon as I made it.

I would spend my money on gadgets, clothes and just stuff that I didn’t need because I didn’t have a financial plan.

I didn’t have a vision of what I want my life to look like in the next 5-10 years.

And without that plan, it was a lot easier for me to spend money on dumb stuff that I didn’t need because I didn’t understand the cost of wasting this money.

Now, after learning how important a financial plan is, I can say that I’m a lot more optimistic about my financial life in the future and I have a reason to cut back on my spending, save money and invest the rest.

I’ve recently been using our very own TMF budgeting template and it’s already been so useful to me.

But you don’t need anything complicated, all you need to do is to sit down with a pen and paper and plan where you want to be financially when you’re 23, 25, or 30.
All of these things can be different for different people which is why it’s so important for you to write down exactly what you want and what your goals are so that you don’t get influenced by other people who tell you what you should want in your life instead.

If you don’t have your own plan and values written down, other people like your friends or your parents will influence you and tell you that you need to spend your money on this new car or this new house that’s what you should be aiming for.

But in reality, everyone has different goals and different milestones they wanna hit and you have to be clear on exactly what you want out of your life.

You can change it from time to time as you grow and learn about different things that you want, but it’s so so important to have this piece of paper with you and it can even save you from bad financial decisions that put you in a really bad spot.

MONEY TRAP #2: Having high living expenses (3:55)

Your 20s are the only time when you're allowed to live like you're broke. Take full advantage of it.

MONEY TRAP #3: Not taking risks (5:47)

Your 20s are the best time to take risk because you have very little to lose. As you grow older, you will get into more commitments and you will more on the line if something goes wrong.

If you've ever wanted to purse your passion or try something new, your 20s is THE time.

MONEY TRAP #4: Neglecting the value of time (8:41)

Time is scarce, money is not.

Most of us have it the other way around.

Time is the ONE thing that young people have that old rich people can never have back.

Final thoughts (11:41)

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Видео The 4 WORST Money Traps Most People Make In Their 20s & How To Avoid Them канала Emir | The Millennial Finance