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5 Financial Mistakes to Avoid in Your Late 20s

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Life can go by very fast once you get to your early 20s, but this does not make it okay to fail at money management. You have your whole life ahead of you, and you should take measures to make sure that you don’t end up in dire straits when you get older. Read on to see five of the financial mistakes that you need to avoid in your late 20s if you want to have the prospect of a bright future.

1. Spending More Money Than You Make

While you may feel as though you can make as much as you need to keep up with an expensive lifestyle, it’s important to spend your money with a plan. Don’t try to maintain a lifestyle that’s out of your comfortable reach from a financial viewpoint. This is because the moment you get used to a lifestyle that you cannot sustain comfortably, you will spend years of your life playing catchup. Sooner or later, this will get exhausting and you will find that you don’t have a lot to show for your hard work. This includes, for example, owning a timeshare. Around 66% of all timeshare owners in 2016 said that they wanted to cancel a timeshare because the fees for maintenance were too expensive. Set up worthwhile investments that you have researched thoroughly to avoid falling into a similar trap.

2. Failing to Set Financial Goals

Financial goals don’t have to be lofty for them to work. In fact, the smaller you start, the better. This is because you will have an easier time saving up for them and you will get motivated to keep planning. This can help you live a life of purpose that’s driven by results because you will be confident in your plans to achieve the goals that you set. As you grow older, this is something that you will be glad you took the time to do.

3. Not Finding a Job That Doesn’t Drain You

As every adult of working age probably knows, a job is practically the spine of a successful future. With this in mind, you should make sure to find a job in your 20s that will meet your needs without breaking you. Take time to set a foundation in a career or job that you know you will be able to enjoy doing years down the line. While you may go out to look for greener pastures eventually, you need to know that you are comfortable enough in your job to be okay if you have to do it for the rest of your life. This is the best thing that you can do for your mental health. If you put in the work, you can find a great job given that, globally, the workforce is made up of 70% of passive talent. These ones are not actively looking for a job, while the remaining 30% are actively looking for a job.

4. Failing to Set up an Emergency Fund

Emergency funds exist for a reason, and that is to help meet an emergency need without upsetting the quality of life of a given individual or even family. Set up an emergency fund in your 20s to make sure that you are financially at an advantage no matter how things go.

5. Not Pursuing Advanced Degrees Strategically

Finally, while pursuing higher education is always a good idea, you need to do it strategically. Enroll in courses that will further your chosen career so that you don’t end up building a large amount of student debt that will not pay for itself. For instance, the IT industry is currently big, with enterprises spending $4 trillion this year alone on services and products in IT.

Avoid making these five financial mistakes in your late 20s. You may have a good chance to succeed at money management both now and in the future.

Hope’s Debt Update – August, 2022

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I feel REALLY good about the amount of debt I’ve paid off. Although I’m not where I want to be, I am headed in the right direction for sure!

Debt DescriptionOriginal Total (January, 2022)Current Month TotalGoal to Payoff
Medical - COVID Hospital Stay
5,129
2,197
Medical - Hearing Aids
4,500
0Aug, 2022
Medical - Testing #1
7,506
0Oct, 2022
Medical - Testing #2
5,900
0Feb, 2022
Mortgage
97,850
94,416
Student Loan
19,116
18,495
Total$140,001
$115,108

For the rest of the year, I am focused on 3 things for my money.

  1. Saving for a winter trip (it is the family Christmas present)
  2. Rebuilding my savings
  3. Continuing to pay down debt but not pushing it for this final half of the year

Here’s what I’m currently paying toward debt monthly:

  1. $306 = Student loans
  2. $658 = Mortgage payment
  3. $250 = Medical debt

After Christmas, I plan to ramp up my debt repayment plan again. In the meantime, I’ve also got to source a new medical insurance policy. Currently, I’m paying for COBRA from my old corporate job. I’m now eligible for my contract job’s policy but it doesn’t look like coverage is worth the $$ so I’m going to try the healthcare marketplace.

Why Slow Down

In preparation for the “why are you slowing down” question, here is my reasoning…

#1

This is Princess first time taking all this on herself. While I’m still paying for her car insurance, gas, and cell phone bill, she is covering everything else including her rent. I want to make sure I stay plenty liquid to help if I’m needed. Along that same line, I have no idea what Gymnast is going to choose to do after high school. And I want to have plenty to support his first year like I did Princess should he choose that route.

#2

It’s getting more and more difficult to get all the kids together. The family picture I posted on my last post was the first time we’ve all been together since, well, I don’t know when. I don’t think it was last Christmas, but it might have been. We aren’t going to Texas for Thanksgiving because 3 of the 5 kids couldn’t go due to work obligations. So for Christmas, I have planned a family trip and everyone has gotten the time off. (It’s not over Christmas, but it is their Christmas present.)

P.s. I know I need to be making some extra money, so I’d been thinking about selling some stuff on Facebook Marketplace.  Sometimes I’m in and out, so porch pickup is often a good idea for me.