Common Money Mistakes Millennials Make (and What to Do Instead)

Money | common money mistakes

Managing your finances can be intimidating, especially if you are beginning to understand the financial world. People make many common money mistakes, and it’s important to be aware of them to avoid them. Let’s look at 3 common money mistakes and how we can avoid them.

1. Not Saving Enough

One of the most common money mistakes is not saving enough. Waiting until you are older, have a higher salary, or are more financially stable to set aside money for the future can prevent you from reaching your financial goals. Don’t succumb to all-or-nothing thinking. Even if you can only save a few dollars from each of your paychecks, you can create a small financial cushion for yourself that could help prevent the need to use high-interest credit cards to handle surprise expenses.

Here are a few things to save for:

  • Annual and bi-annual expenses like car registration fees, auto insurance premiums, and property taxes
  • Irregular expenses like your pet’s veterinary care, out-of-pocket medical and dental expenses, and holiday spending
  • Surprise expenses like towing bills and car repairs, home repairs, and auto or home insurance deductibles

2. Nonexistent Credit

Young people often have no credit history, restricting their ability to get loans or qualify for a mortgage. Establishing a credit history is crucial if you plan to use credit in the future. You need to establish some credit history before you know it—before applying for an apartment or insurance for a house—so start building it now. Open up a few lines of credit with manageable limits and pay back on time to help establish good credit.

3. Relying on Parents for Financial Support

Although it may be scary your finances, learning to do so helps you become more independent in the long run. Relying too much on your parents or guardians regarding money management might lead to overspending. Start budgeting and saving now.

Give each of your hard-earned dollars a job. A budget’s job isn’t to tell you what to do but rather to tell your money what to do. If you don’t have a budget, check out some popular budgeting apps that make managing your money easy.

Financial autonomy means you can make decisions about your future that are in your best interests. The sooner you can stand on your own financially, the better.

How to Get a Loan, Even If You Don’t Have Credit

Tio Rico Te Ayuda provides access to quick and easy short-term cash loans, including personal loans and auto title loans, no matter your credit status. If you have a car, you may be able to use it to gain access to the cash you need, even if you have bad credit or non-existant credit.

We provide financial services in Phoenix, Glendale, Avondale, and Mesa, Arizona. You can start the application process online to help you quickly get the cash you need.