Financial Habits to Avoid in Your 20’s & 30’s
Senior Home Loan Advisor
Caitlin Chen
Published on January 12, 2021

Financial Habits to Avoid in Your 20’s & 30’s

Getting your finances in order during your 20’s and 30’s is hard. Figuring your career and financial plan out is far from easy, but it’s not impossible. It just takes time to learn how to balance your own finances in a way that is personally fulfilling and will help you reach your goals.

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Overtime, you will learn more about yourself, and your goals may shift, so it’s a continual process to assess your needs and wants. However, it is important to not drown yourself in worry until you “get everything together”. You can take steps to diminish stress in the meantime by following these few easy pointers.

Don’t Overthinking Your Finances Until Exhaustion

Money is important, but it should not take over your entire life. There is enough pressure from the demands on your money alone (rent, bills, savings, insurance costs, etc), so you should avoid creating additional pressure on yourself.

For example, you may check your bank accounts repeatedly within just one day. This can become draining, and it can take not only your time but your mental energy. It is best to give yourself space to separate your life from your finances.

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While it is important to check a few times a week to ensure there are no erroneous fees or suspicious expenses, there is no need to do it multiple times a day. Plus, many banks will allow you to enable features that text or email you alerts with suspicious activities.

Don’t Waiting Too Long to Invest Money

You might think of investing money as something that requires a lot of financial expertise. However, there are a number of options that are very easy to set up. For example, there are apps that are designed to guide you through the process of starting a savings and investment account. Acorns is a great option, and it will help you invest your spare change in order to start saving effectively. Acorns will “round up” your purchases to the next dollar, essentially investing your spare change. All you need to do is link a debit or credit card to the app.

Don’t Thinking About Savings Only in Large Quantities

You might think you need to set aside large quantities of money every month, but this may be an unrealistic financial goal when you’re first starting your career. Instead, start by saving a little bit here and there, and it will begin to add up. Try the 52-week challenge by investing $1 one week, $2 the next, and so on until you save $52 a week, a year later. Give yourself manageable objectives, so that you can develop sustainable saving habits.

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Final Thoughts

Allow yourself to establish reasonable financial goals and start small, invest early. Then, you can give yourself freedom from constantly thinking and worrying about your financial goals. Overtime, reassess your financial goals, and you will be on a solid path for financial success.

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Senior Home Loan Advisor
Caitlin Chen Senior Home Loan Advisor
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(213) 248-1230