6 Money Mistakes Young People Make
The internet and mobile devices have placed young people in a situation of greater vulnerability when compared to previous generations, with regard to consumption and the management of personal finances.
Every day, young people are impacted by advertising with persuasive messages that lead them to consume certain products. But if, on hand, the forms of consumption have diversified, financial education remains the same. Young people don’t have interest in money, or know about money, ending up managing it based your one emotions. Taking these aspects into account, we share the 6 errors with the greatest impact on the generation of wealth for the youngest.
1. Lack of Interest
In general, there is a lack of interest in the area of finance. Sometimes, the lack of interest is caused by ignorance, but on the other hand, it is also the very lack of interest of young people, which gives rise to the lack of knowledge. In an era of easy access to information, it is possible to know about personal finances, investment concepts, as well as, to have access to the best entrepreneurial tools and methodologies, all, in a simple search. The lack of interest and knowledge in finance is the No. 1 mistake of young people in building their wealth.
2. See money as a taboo
As children, we are not educated to talk openly about finance, or even to think positively about money. In conversations with family, or between friends, we do not learn to discuss money openly. We are willing to discuss everything, football, politics, cinema, but never about money. We have several beliefs and myths related to money and we act as if it were a secret. The taboo on money has no benefit for our financial life. Most families only talk about money when they are lacking.
To reverse this trend, it is necessary to demystify the issue of money, to speak openly and in a healthy way, and not to wait for an unpleasant situation to force us to do so. Money does not have to be TABU.
3. Not thinking about the future
When we are young, we have a habit of facing the future as something far away, which never comes. In doing so, young people do not plan and manage their finances strategically and in the long run, ending up living only on a day-to-day basis.
When it comes to personal finances, it is important to always think through planning, to think about spending as well as long-term expenses and investments. The sooner you start building financial freedom, the better.
4. Immediate
Who wouldn’t want to get rich overnight?
In reality, it’s not just young people, everyone would like to get rich overnight, if no effort depends on it. However, to get rich it is necessary to comply, make the necessary choices and above all according to the time of consolidation. As mentioned in the previous point, and contrary to what should be done, instead of thinking about the future, young people anticipate their dreams, such as buying a car, a house, or even marriage, long before they have the capacity financial, contracting financing and conditioning its financial capacity in the future. Think only of the immediate and want to think rich, before being, which is one of the great mistakes of young people, which makes it impossible for them to generate wealth. It is important to define as determination and when to make decisions, avoiding as a choice only in emotion.
5. Impatience
Impatience is one of the characteristics of youth. When we are young we have a hard time understanding that certain things take time. Wealth is a long-term building process. It is necessary to respect the process, learn to spend better, earn more and invest better. Build our wealth in a structured way, because it is time that will determine what is the best strategy for building our wealth.
The same happens in other areas of life, such as health, for example, when we are sick, the doctor always gives us a certain period to take the medication. If we do not respect this deadline and decide to finish the medication early, we can have unexpected consequences, such as side effects or even prolong our clinical condition. Time is important and fundamental to determining success.
6. Not being a protagonist
Take responsibility for the mistakes we make, and have the maturity to correct them. Many young people end up blaming other people or external situations instead of trying to reverse the process.