Most people say it’s best to save and invest while you are still young and able. However, it’s not that easy - bills easily pile up, you want to travel the world, and you simply want to live your best life.
While it’s tempting to spend all your money right after receiving your pay, it would be wise to heed our advice when it comes to saving money for your future. It might not be your priority right now, but trust me, getting an insurance and a savings account, a house of your own, and a car lease are some of the things that you should be thinking of right now.
Here are some of the things people over the age of 50 are now regretting, plus some pieces of advice on how to avoid them:
Buying Useless and Nonsensical Stuff
Older people tend to regret buying stuff when they’re younger, especially the ones that they find no use for when they get older. Things, like buying the latest phone, spending it all on booze and partying, upgrading your gadgets every now and then, can make you think that you are investing for the future, but in reality, you are not - you are just splurging and you are impulsively living in the moment. You will eventually get old, your kids will eventually move away, so think about it: who else would use those things when they have all moved on?
How to avoid it: Before buying something, ask yourself if you will still be using it years after purchasing it. If the answer is no, and it seems like a careless move, then it most definitely is. Think thrice before purchasing something, especially if it comes with a hefty price tag.
Waiting for their Salary to Increase Before Actually Investing
Young people tend to think about greater opportunities - and how they are just on the side. This is not always the case, especially these days when trying to get a raise is as difficult as saving money for your retirement fund.
How to Avoid it: Stop thinking about eventually getting a raise, especially if you are not sure that you will get it. Start creating a budget, stick to it, and start building a retirement or investment fund.
Putting Their Investment in the Wrong Places
Younger people tend to think that there is an easy way to earn money when in fact, there is none. They invest in businesses that are not established, and sometimes, they even fall prey to scams who promise to give “guaranteed profit”.
How to avoid it: Before investing in a business, make sure that you have asked advice from a professional. Ask for proof and for a business plan and study, and only agree once you have studied everything. Make sure that what you are investing in is not a scam, and only invest in people that you truly trust.
Money is not an easy thing to earn, yet something we will need forever. Save while you’re young, and you wouldn’t have to worry about your future anymore.