{"id":1797,"date":"2015-07-14T20:50:46","date_gmt":"2015-07-14T20:50:46","guid":{"rendered":"https:\/\/keblog.demoapp.xyz\/?p=1797"},"modified":"2022-10-19T03:58:44","modified_gmt":"2022-10-19T03:58:44","slug":"several-ways-people-spend-their-salaries-in-their-20s-that-leave-them-broke","status":"publish","type":"post","link":"https:\/\/neo-blog.kalibrr.com\/blog\/id\/several-ways-people-spend-their-salaries-in-their-20s-that-leave-them-broke","title":{"rendered":"5 Ways People Spend Their Salaries In Their 20&#8217;s (That Leave Them Broke)"},"content":{"rendered":"<p>Let\u2019s be real here. Getting your first (and second and third and so on) paycheck is probably the highlight of getting a job. After years of relying on mom and dad\u2019s good will and generosity, we finally get to fatten our wallets with our own hard-earned money.<\/p>\n<p>But after the initial high of excitement \u2013 treating your family to dinner with your first <em>sweldo<\/em>, buying something you like as a \u201creward\u201d \u2013 you\u2019ll end up with not much money left in your bank account.<\/p>\n<p>Your 20s are the perfect time for you to <a href=\"\/blog\/how-to-start-saving-for-retirement-in-your-20s\">start saving money for retirement<\/a> or investments. And even if you feel like you\u2019re ready for either of those things, it\u2019s always a good idea to save up for a rainy day.<\/p>\n<p>We don\u2019t really notice it right away but our little expenses here and there do add up. The last thing you want in your 20s is to be buried in debt.<\/p>\n<p>Here are a few common money mistakes in your 20s.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_26 counter-hierarchy\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">TOPICS<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><label for=\"item\" aria-label=\"Table of Content\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/label><input type=\"checkbox\" id=\"item\"><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/neo-blog.kalibrr.com\/blog\/id\/several-ways-people-spend-their-salaries-in-their-20s-that-leave-them-broke\/#Swiping_your_credit_card_like_theres_no_tomorrow\" title=\"Swiping your credit card like there\u2019s no tomorrow\">Swiping your credit card like there\u2019s no tomorrow<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/neo-blog.kalibrr.com\/blog\/id\/several-ways-people-spend-their-salaries-in-their-20s-that-leave-them-broke\/#Forgetting_about_the_rainy_days\" title=\"Forgetting about the rainy days\">Forgetting about the rainy days<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/neo-blog.kalibrr.com\/blog\/id\/several-ways-people-spend-their-salaries-in-their-20s-that-leave-them-broke\/#Trying_to_keep_up_with_the_Joneses_and_the_Kardashians_and%E2%80%A6\" title=\"Trying to keep up with the Joneses, and the Kardashians, and\u2026\">Trying to keep up with the Joneses, and the Kardashians, and\u2026<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/neo-blog.kalibrr.com\/blog\/id\/several-ways-people-spend-their-salaries-in-their-20s-that-leave-them-broke\/#Not_learning_how_to_budget\" title=\"Not learning how to budget\">Not learning how to budget<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/neo-blog.kalibrr.com\/blog\/id\/several-ways-people-spend-their-salaries-in-their-20s-that-leave-them-broke\/#Failing_to_educate_yourself_about_investments\" title=\"Failing to educate yourself about investments\">Failing to educate yourself about investments<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/neo-blog.kalibrr.com\/blog\/id\/several-ways-people-spend-their-salaries-in-their-20s-that-leave-them-broke\/#Want_more_tips_on_how_to_grow_in_your_career_For_your_daily_dose_of_career_advice_follow_Kalibrr_on_Facebook_Twitter_and_Instagram\" title=\"Want more tips on how to grow in your career? For your daily dose of career advice, follow Kalibrr on Facebook, Twitter, and Instagram.\">Want more tips on how to grow in your career? For your daily dose of career advice, follow Kalibrr on Facebook, Twitter, and Instagram.<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Swiping_your_credit_card_like_theres_no_tomorrow\"><\/span><strong>Swiping your credit card like there\u2019s no tomorrow<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After you start working, you will soon be able to apply for a credit card. The application process for getting a credit card is different for each bank, but soon enough you\u2019ll get your hands on your very own shiny new, credit card.<\/p>\n<p>It\u2019s easy to give in to the fantasy that a credit card pretty much means free money. Yes, you don\u2019t have to pay for anything right now, but you will eventually have to pay for all of your expenses. And each time you miss payment, your bill goes up. Once all your credit card debt adds up, it will be a struggle to pay off your mounting debt.<\/p>\n<p>Remember, never spend more than you can afford.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Forgetting_about_the_rainy_days\"><\/span><strong>Forgetting about the rainy days<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If I asked you now if you were financially prepared for hospitalization, would you be able to say yes? As much as we\u2019d like to think we have life in control, the truth is it can surprise you when you least expect it. Accidents, sickness or job loss can sometimes happen to the best of us.<\/p>\n<p>Life is unpredictable so it\u2019s a wise move to start the habit of saving up for <a href=\"http:\/\/www.lifehack.org\/articles\/money\/10-common-money-mistakes-people-wish-they-realized-their-20s.html\" target=\"_blank\" rel=\"noopener\">at least 6 months of emergency savings<\/a>. Save up enough money to cover your bills such as rent, food, utilities and other living expenses. If you can save up more money than that, even better!<\/p>\n<p>Watching out for emergencies isn\u2019t being paranoid; it\u2019s just a wise money move.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Trying_to_keep_up_with_the_Joneses_and_the_Kardashians_and%E2%80%A6\"><\/span><strong>Trying to keep up with the Joneses, and the Kardashians, and\u2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Yes, we all want to be stylish and on trend. You see your friends with the latest gadgets, #OOTD-worthy outfits and the flashiest cars, and you\u2019ll naturally want to own them yourself. It\u2019s human nature to want those things for ourselves as well. However, all those things come with a price.<\/p>\n<p>Ask yourself first if you can afford that kind of lifestyle. If you don\u2019t then it\u2019s perfectly fine. It\u2019s okay not to party on weekends and it\u2019s okay if you can\u2019t travel with your friends. It would be a crucial misstep to spend all your money on frivolous luxuries and to forget to save up.<\/p>\n<p>The truth is, try as we might, sometimes we really just can\u2019t keep up. Some people are just financially fortunate and that\u2019s okay. You\u2019ll get there someday too. Just make sure you don\u2019t break the bank getting there.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Not_learning_how_to_budget\"><\/span><strong>Not learning how to budget<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When we\u2019re students, we only need to budget our allowances. We didn\u2019t really have a lot of expenses: lunch and snacks from Monday to Friday, going out with friends, and other light spending. Heavier expenses such as bills and loans were faraway thoughts. \u00a0And as full-fledged adults, we suddenly have to deal with all these expenses head on now. It\u2019s natural for you to feel a little lost when it comes to budgeting.<\/p>\n<p>Start with the 50-30-20 rule: 50% of your salary should go to fixed expenses, such as your rent, loans, utilities and subscriptions (like cable TV). These are expenses that you are expected to pay on schedule every month so it\u2019s better to pay on time than to accrue late fees. 30% then goes to flexible spending, or day to day expenses that you can tweak. This includes groceries, transportation expenses, entertainment, hobbies, etc. It doesn\u2019t really matter how you spend the 30% just as long as you don\u2019t go over the 30%. The remaining 20% goes to financial priorities. Whether it\u2019s to pay down debts, put aside money for retirement savings or to invest in stocks, make sure 20% of your salary goes to that.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Failing_to_educate_yourself_about_investments\"><\/span><strong>Failing to educate yourself about investments<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>I know, I know, investments sound like such an adult thing to deal with right now. You\u2019re young, you have money, and you want to have fun. But news flash: you won\u2019t be young forever. The sooner you start thinking about your long-term financial goals, the sooner you can start preparing for your future.<\/p>\n<p>So that you won\u2019t get too overwhelmed with all of the financial terms and different types of investments, <a href=\"http:\/\/fitzvillafuerte.com\/your-five-financial-stages-and-investment-goals.html\" target=\"_blank\" rel=\"noopener\">ease yourself into it with a timeline<\/a>.<\/p>\n<p>If you\u2019re still in your 20s, personal finance blogger <a href=\"http:\/\/fitzvillafuerte.com\/\" target=\"_blank\" rel=\"noopener\">Fitz Villafuerte<\/a> suggests using this time to make a habit of saving money and take steps toward financial literacy. Learn about the various types of investments and look into ways you can save for retirement, such as your SSS retirement plan.<\/p>\n<p>When you hit your late 20s, begin exploring different types of investments and try your hand at investing in them.<\/p>\n<p>It\u2019s never too early to start.<\/p>\n<p>Getting the hang of handling your money can be challenging especially at the start of your career. Even people who are already in their 30s or 40s still have trouble making ends meet. But if you acquire the habit of avoiding the usual financial pitfalls that people in their 20s encounter, you\u2019ll soon find personal finance success.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Want_more_tips_on_how_to_grow_in_your_career_For_your_daily_dose_of_career_advice_follow_Kalibrr_on_Facebook_Twitter_and_Instagram\"><\/span><em>Want more tips on how to grow in your career? For your daily dose of career advice, follow Kalibrr on <a href=\"https:\/\/www.facebook.com\/Kalibrr\/\" target=\"_blank\" rel=\"noopener\">Facebook<\/a>, <a href=\"https:\/\/twitter.com\/kalibrr\/\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>, and <a href=\"https:\/\/instagram.com\/kalibrr\/\" target=\"_blank\" rel=\"noopener\">Instagram<\/a>.<\/em><span class=\"ez-toc-section-end\"><\/span><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>Let\u2019s be real here. Getting your first (and second and third and so on) paycheck is probably the highlight of getting a job. After years of relying on mom and dad\u2019s good will and generosity, we finally get to fatten our wallets with our own hard-earned money. But after the initial high of excitement \u2013 [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":1798,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[],"_links":{"self":[{"href":"https:\/\/neo-blog.kalibrr.com\/blog\/id\/wp-json\/wp\/v2\/posts\/1797"}],"collection":[{"href":"https:\/\/neo-blog.kalibrr.com\/blog\/id\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/neo-blog.kalibrr.com\/blog\/id\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/neo-blog.kalibrr.com\/blog\/id\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/neo-blog.kalibrr.com\/blog\/id\/wp-json\/wp\/v2\/comments?post=1797"}],"version-history":[{"count":0,"href":"https:\/\/neo-blog.kalibrr.com\/blog\/id\/wp-json\/wp\/v2\/posts\/1797\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/neo-blog.kalibrr.com\/blog\/id\/wp-json\/wp\/v2\/media\/1798"}],"wp:attachment":[{"href":"https:\/\/neo-blog.kalibrr.com\/blog\/id\/wp-json\/wp\/v2\/media?parent=1797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/neo-blog.kalibrr.com\/blog\/id\/wp-json\/wp\/v2\/categories?post=1797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/neo-blog.kalibrr.com\/blog\/id\/wp-json\/wp\/v2\/tags?post=1797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}