With age comes wisdom, which means that many of the mistakes that we make can be blamed on youth and ignorance. However, you can save yourself from learning lessons the hard way by paying attention from wise people that have been in your shoes before. When you are young, there are some common money mistakes that you make that could actually be avoided if you have just a little bit of basic financial knowledge.
It is important for you to know about the most common money mistakes, so that you know what not to do when you are just starting out.
Here are the common money mistakes that you should avoid:
Home Buying Rush
Just because you are out on your own, does not mean that you need to be in a rush to buy a home. One of the biggest money mistakes that young people tend to make is buying a home before they are financially secure enough for this type of purchase. Many young people feel the allure to buy their own home, but it is not always the wisest money decision that you can make. It is best to resist the urge to buy a home until you are really ready. Owning a home can be a great experience, but it also comes with stress, expenses and is a huge commitment.
Borrowing Money for Nuptials
Many young people are in a rush to go down the alter. When you find your one true love at a young age, you are often in a hurry to get married. This means that you are getting married when you might not have the funds available for a huge celebration. To solve this problem, a lot of young people choose to borrow the money for their wedding. This is never a good idea and will only ensure that you are in debt for a long period of time. The average cost of a wedding is $28,000, which is more than what most young people have in their savings. When you are planning your wedding, you need to have a budget in mind and make sure that you are only spending what you have.
No Health Insurance
It is also common for young people to not have adequate health insurance coverage. You might think that you are immune from illness, but this may not be the case. When you do get sick, you will have huge medical bills that will put you deeper in debt.