3 Financial Pitfalls to Avoid When You’re Young
Read Time / 2 Minutes
Theme / Financial Planning
One of our goals here at CWM is to educate people to help set themselves up for long-term financial flourishment. Often, we’ll meet with clients who feel like they need to play catch-up for prior financial decisions. We want to help you avoid that conversation 20 years from now. These tips will be helpful for people of all ages, but specifically people who are 35-and-under.
1. Going into unnecessary debt
Whether its credit cards, car loans or student loans, I meet so many people who are overwhelmed by debt they took on when they were young. Instead of credit card debt, create a budget and adjust your standard of living. If you have a car loan, go trade it in and buy a lower quality car with cash. If you’re considering higher education, be sure the degree you’re pursuing can return a high standard of living and that you have a debt payoff plan in place. Avoiding debt, even if it means having a less luxurious life, will help set you up for better long-term financial health.
2. Waiting to invest for retirement
Time and time again, people will decide to wait until their older to save for retirement. When investing, time is your best asset. The sooner you can get started, the better. Even if its just $100/month, starting to invest when you’re young can set you up for a proper retirement savings.
3. Going out for coffee (every… single… day)
It’s only a $5 drink. What’s the big deal? Let’s work through some numbers here. If you’re someone who goes out for coffee four days a week, you’re likely spending $20/week on coffee. Again, $20. What’s the big deal? Over an entire year, your four coffee trips a week is going to add up to over $1,000 in coffee. I’m not saying coffee is evil, but making coffee at home can save you $60/month. By making your coffee at home, within a year you could save enough money for a roundtrip flight to Paris…
…Just imagine how good the coffee in Paris will be.
Nathan Carroll
Registered Assistant
208-918-8655
nathan.carroll@christianwm.com
