There are so many things we learn in our school and higher education classes about improving our skills. Apart from the finance pros, we don’t learn much about spending our money wisely.
Your spending habits in your twenties could be a huge factor that affects your financial security in the future. And it’s not a good idea to be financially insecure, is it? Let’s take a look at a few things and places where you shouldn’t splurge your money.
Unfurnished home and overpriced apartment rentals:
What’s the difference between an expensive apartment and an affordable one? Expensive ones can be either fully furnished or they belong to a good locality. Well, apart from dealing with creeps in a shady locality, you’d rather stay in a better locality. Agreed.
But why would you unnecessarily spend on spaces where landlords charge extra rent just because they provide furnishings with your room. And why pay 11 month’s rent as a security deposit?
You’d rather take a fully furnished shared apartment from online services like NestAway. Also, they charge only two month’s rent as a security deposit. No need to compromise for an inconvenient PG. They provide a better rental solution via design and technology. Check out Furnished Shared Rooms without Brokerage in Delhi and other metro cities in India.
Alcohol and same old’ parties:
Going out twice to a decent pub costs at least 5000 bucks. That’s 20 K in a month and Rs.2,40,000 a year. Imagine the amount of money you can save there? Nobody says don’t go out at all. You could cut down your expenses to half of that amount and use it somewhere else.
Have savings or build a decent wardrobe for yourself. Invest in shoes, for god’s sake! Alcohol is painful. At least on the next day.
You could call your friends at home and have a house party instead. You’ll have much more fun without the interference of any third party trying to get friendly with you. This sounds like ‘parental’ advice but well, our parents are much wiser, if not intelligent.
Brand new vehicle:
Who gets a brand new car in their 20s? It’s totally not worth it. You could buy yourself a decent car or a motorcycle for almost half the price. A new car is no swag, a Lamborghini is!
Plus, you get to learn about vehicle tech when you use a used car. You learn the dos and don’ts of owning a car. You know how often to inflate the tire. Would you want to buy your new car and not know about this? You will end up damaging your darling.
Use cab services like Ola and Uber if you like commuting by car. Imagine the money you could save. You could take numerous more trips in that money.
The technology you don’t need:
Apart from gaming devices and decent cellphones or computers, there’s no point buying expensive technology that’s going to be kissing the dust in your house.
We all love DSLRs and iPads but, do you really need them and Buy a better cell phone instead. You’ll click good pictures with ‘em anyway. Essentially, don’t try to compete with Richie Rich.
Above all, you must invest in experiences than things when you’re in your 20’s. You must have amazing stories to tell instead of having a big gaudy house or a hoverboard.