The Top 5 Financial Mistakes 21st–Century Youths Make
The youths of this generation are often criticized for their spending habits and ostentatious lifestyles. This is true but all the spending and lifestyles wouldn’t have been a source of worry if they had a good way of handling financial investment. When we look at the top 5 financial mistakes 21st-century youths make, you will understand what we mean.
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The saying that you should spend money because you don’t know when you will die is erroneous and misleading. The right mentality and attitude should be to spend money now because you have invested well.
The youths have seen a lot of misfortunes in their time and are conditioned by the brevity of existence that is prevalent in our time. The financial mistakes 21st-century youths make are a testimony to their way of perception.
We believe that if you follow these financial mistakes 21st-century youths make that we will discuss below, then you will have a possibility of escaping financial crisis.
Related: 10 mistakes entrepreneurs make when starting a business online in Nigeria
5 Financial Mistakes 21st-Century Youths Make
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Waiting to Invest
There is no doubt about the fact that investing is the key to financial freedom. One thing is to invest while it is another thing to invest at the right time. Time is crucial to investment and it is the biggest advantage and disadvantage to being liberated from financial crises.
One of the financial mistakes 21st-century youths make is to keep waiting when they should have invested. The people that made the leap in 2011 with bitcoin are eternally liberated except there is a huge financial collapse.
You will have to be patient and strategic in your investing and you will definitely get to that level of financial freedom you seek.
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Upgrading Your lifestyle without increasing savings
It is easy to want to increase your status in the society through increasing your lifestyle. It is noble to want to live better but it is pure suicide to do that without increasing your savings. They have to work hand in hand.
One of the terrible financial mistakes 21st-century youths make is to increase expenditure in the name of increasing their lifestyle without making a concerted effort to increase their savings. When you want to have fun, make sure you have got it all covered in your savings and you will be better for it.
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Avoiding risks
Risks are intrinsic aspects of financial freedom. Youths can afford to take risks that the older generation cannot because they still have more time before they will retire.
When you see an opportunity to make a serious financial investment, you should take it after analyzing the ups and downs.
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Neglecting retirement savings or plan
One constant in your life is the fact that you will grow old and retire. There is no way out except you die early. One of the costly financial mistakes 21st-century youths make is to forget to make adequate preparation for this eventuality.
You can make this preparation either by saving for retirement or by having enough investments or businesses that will keep you comfortable until the time of your demise.
If you are in the public sector or you are an employee of an establishment, you will need to keep saving for retirement. There are people or establishments that handle funds for this particular purpose.
On the other hand, if you have businesses that are already successful, you will have an exit strategy that keeps you comfortable when you are no longer there.
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Lack of planning
If you fail to plan, then you will plan to fail. Lack of planning is one the financial mistakes 21st-century youths make. Planning is everything. According to Antoine, “a goal without a plan is just a wish”.
If you need to achieve financial freedom, you will need a working plan. Planning goes beyond just your financial success to every facet of your life.
