5 Financial Errors Of The Youth

5 Financial Errors Of The Youth

5 Financial Errors Of The Youth

5 Financial Errors Of The Youth – Young people born between 1990 and 2006 probably form the most populous generation and the one that has the most influence on the economy. Both in the consumption of everyday products (food, travel, clothing, furniture, etc.) and in the consumption of consulting services (finance, insurance, planning, legal services, etc.) They do nothing like their parents and manage to multiply their tasks through the screens of their computers and mobile devices.

But when it comes to finance, they’re probably making the same mistakes their parents and grandparents made at their age. Have them read the following:

See Also: 3 Wrong Ideas Regarding Finance

1. You are already in too much debt.

Credit is easy, we know that. But as the desire to go out, to travel, or to obtain the latest techno gadget or the latest piece from an in-demand designer is too strong… you are heading into a wall. By living only in the present moment, you are mortgaging your future. Credit is your worst financial enemy.

2. You do not automate your automatic savings contributions.

By starting a savings plan every two weeks or every month, you could thwart market volatility. For example, someone who pays $500 per month will always have an advantage over someone who pays $6,000 into their RRSP at the end of the year. For what? By automatically contributing each month, you sometimes benefit from temporary reductions in the price of investment shares and you accumulate gains more quickly. Time is an investor’s best ally.

3. By Limiting your sources of financial information to the web

You are neglecting important lessons. Buy books, attend conferences, talk to business people, advisors, professionals… The truth lies somewhere in the center of contradictions. Open your horizons.

4. Without a plan and a budget.

You will run to your loss. Everything that can be measured can be improved. And I would add, what we neglect atrophies. If you have difficulty managing $30,000 per year and saving, it won’t improve with $50,000 or even $100,000.

You need to keep a budget and make a financial plan. Rest assured, it doesn’t need to be very complex, but it must be done in writing and followed weekly. Lesson #1= Spend less than you earn.

See Also: 4 Wrong Ways To Squander Your Savings

5. You exaggerate your abilities and knowledge of financial markets.

It is not because you have made one or two good moves on the stock market that you are the next CEO of the Caisse de dépôt. All major professional managers follow rigorous processes and visit their portfolio companies in person. Capital management is not limited to a screen. There’s only one proven method to outsmart the market: hold on to your investments for the long term.

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