Many people make the biggest mistakes in their 20s. The reasons for that are many, but mostly have to do with being financially irresponsible. That’s because getting your first paycheck means a lot. But it takes time until we learn to appreciate money. So until we learn that lesson, we spend, spend, and spend our money.
While there is nothing wrong with purchasing stuff, there is a thin line that dictates whether or not you’re making a mistake. So if you’re here looking to figure out the worst purchases you could make in your 20s, make sure to stick around.
Buying Stuff On the Cheap
Here us out on this one. Buying cheap goods is the way to live out your 20s. With all the education commitment you have, there isn’t much room to spend on quality goods. But buying cheap is a double-edged sword and one you hate to fall on to.
There is an old saying that goes, “buy cheap, buy twice.” So what makes this such a “bad purchase?” As many people look to start their businesses while in their 20s, they will most likely turn their attention to cheap or used goods at first. While this is absolutely fine, you should always prioritize value for money over price alone. You’ll need to look in the long term and figure out if a particular purchase will have any value to you buying it on the cheap.
The market is full of cheap goods that only cause more problems.
Get Rich Quick Schemes
These get-rich-quick schemes, sorry…courses, are very attractive to young adults in their 20s. They’re everywhere! They’re on Instagram, Twitter, Facebook, and some of your friends might be into these. It’s very natural to want to get rich fast while in your 20s. However, this is simply impossible in many ways. According to this post from The Gentleman’s Journal, the average age to make your first million is 37.
But most people in their 20s overlook this fact. They see famous celebrities and influencers living wealthy lifestyles on Instagram and they want that too. So what are they doing to achieve that? They fall for get-rich-quick schemes. As the name applies, these are nothing but schemes to steal your hard-earned money. While these “influencers” and “gurus” market their schemes as courses, they’re nothing but MLM pyramids that only make them richer.
A get-rich-quick scheme only makes the scammer richer. They never work and are illegal in many places around the world. They usually cost a lot of money and leave you with nothing in return. So don’t fall for these as they’re some of the worst purchases you could make in your 20s.
Forking Your Money On Designer Clothes
We all want to wear designer clothes. But buying Gucci, Prada, or a Louis Vuitton T-shirt can cost a lot of money! That’s money you don’t have! Even if you want to impress someone, it can spiral out of control, forcing you to buy only designer clothes.
Think of it this way. A Gucci T-shirt, a simple shirt, costs up to $1,000! With that kind of money, you can buy a lifetime supply of T-shirts. Being young means being impressionable. Very few people in their early 20s aren’t that. So one way to protect your hard-earned money is to stop forking it on designer clothes, shoes, and accessories.
Falling For Stock Tips
Investing is very popular nowadays. It seems everyone wants to invest. With such a huge market, the opportunities for scammers to operate are endless. Don’t get us wrong, buying stocks is definitely a good purchase to make in your 20s. But investing in the stock market isn’t as easy as it sounds. It requires immense knowledge to know how to do it, and how to do it smartly.
But since no one really has the time to read stock reports and annual revenues, people mostly turn to “stock gurus” when it comes to investing. These gurus are nothing but scammers going after your money. They will sell you the idea of buying a stock with a 10X return if you sign up with them. They will also tell you that you’ll be given access to all of their stock signals by placing you in a Discord or Telegram group where they post their tips.
And what do you have to do to get these tips and signals? Fork out hundreds of dollars of course. Buying into stock trading tip groups and gurus is definitely one of the worst purchases you can make while in your 20s. Stay clear of them and always look to do your own research if you’re thinking of investing in the stock market.