“Worry about it later”
A classic one to start. Also known as
“You’re too young to worry about all that”.
“You don’t have to worry about this till later in life.”
Why do I have to worry about it later in life? I don’t want to have to work. That doesn’t mean I won’t, I enjoy working when it’s things I enjoy doing, but I don’t and never will want that deadbeat classic 9 to 5 life, if I have to, I’ll do it.
I don’t want to work because I need to. I want to work because I want to.
The best way to stay away from this conundrum is to start early. To start thinking about getting money for things I want to do rather than things I have to do.
Mac Donald’s or a ‘smaller’ job I don’t really want to do for the rest of my life is bound to catch me at some point, but I want to keep all that to a minimum and I think most people want the same.
I could tell you all day about how significant it can be to think about finance as soon as possible, those who push it to one side and want there older selves to deal with all that added stress can do that if they want. It’s your financial funeral after all… but to give that out as financial advice makes my ears bleed.
My own, unmodified, urge. (Also known as the consumer mindset).
Peer pressure is a big thing. It made me buy stuff I didn’t desire or need, but I did it to fit in or to be in the conversation… Expensive lessons.
Something that doesn’t get brought up much is the pressure you put on yourself. There are times where you use the word ‘need’ rather than ‘wish’. We can justify purchases our investor mindset or our saving mindset, or just a regular mindset wouldn’t.
To warn the younger readers… this doubles when under the influence. Hide your wallet from your drunk self… you have been warned.
Technology/gaming is a little bit of a hidden crush for me. I have struggled to not buy the PS5 or a gaming pc. Every now and then, I can put a lot of pressure on myself to buy it, or to get the latest Fifa to play with the boys, etc. For other people, it could be phones, makeup, sports gear, and so on.
Sometimes we don’t need pressure from others because we put it on ourselves. Listening to the consumer, even if that is you, is on the list for the worst financial advice I ever got. I’m going to expose myself for your entertainment in the next few paragraphs… so enjoy.
I bought the whole assassins creed video game series because this mindset took over. I have ended up playing one of them, yes I plan to play them in the future, but I still had the impulse to buy all of them because ‘I was getting a deal.’
We all know the relatively pricey item we bought and used once or twice before throwing it out or giving it away, or try to sell it on.
I went on a holiday before the co V V came along, where I bought travel stuff, a new, full-sized, bag etc. A load of stuff, stuff I only used once. RIP to all my traveling ideas, and I will be using these in the future, so it’s not the best example but some of the stuff I didn’t need to buy.
My point with all this is sometimes we’re the biggest culprit.
Why do you need that BMW when the only time you use a car is to visit your parents twice a year?
Did you really need to upgrade your phone when your one works fine, and the only difference between the two was the camera got a little better?
I could go on, but you get the point. Sometimes we pressure ourselves to ‘catch up’ or to do or buy something we don’t need or want. Listening to this part of your brain or this person in your life is the worst financial advice you could give to yourself or others.
A lot of people don’t know about debt. They don’t fully understand interest rates, mortgages and loans. How many years it’s actually going to take them to pay things off etc. What level of interest their willing to take on etc.
When I was first getting into the financial space, I talked with family members and friends. A common thing, with people who don’t know what to do with money, was something along the lines of…
“So that’s (overdraft limit) like your new zero” — stolen from Reditt
“Use your overdraft.”
“You don’t have any money? You should come out with us anyway.”
Too many people go into things without knowing the full consequences or, even worse, they heed the worst bit of bad advice and try and move the responsibility to someplace else. “We’re young, we don’t need to think about it…,” etc.
Think about what you’re doing. Think about the repercussions of what you are buying and what kind of loans you’re taking out. How many years you’re going to need to pay things back. As daunting as it sounds. It’s important.
Think about the cons and pros. I read Matthew McMaconay’s (affiliate link to book) book recently. Highly suggest it, by the way, a great read. Where he goes to college to become a lawyer near the middle of the book.
The way it came across, he didn’t think about it in the long term. Many people do the same thing with their finances.
Going into that field your not going to be able to do much, with your debt or a high-paying job till, minimum 30. To the best of my knowledge (If there’s a doc or a lawyer who wants to correct me please do).
That’s great for some people. They will take being in debt because that’s what they want to do, and they’ll know, with the certificates and everything they’ll receive, they’ll be all paid off at some point. Others don’t take this on. They’ll take on the debt and do a couple of years of study and ‘realise it’s not for them.’ There is no judgment in that from me, but your financial situation just took a huge hit.
The average person would have a huge loan to the name. A few years in school, not waisted, you did learn something, but the money that you paid wasn’t worth the outcome. At the time, if you took a moment to realize, in Mathew’s case, you didn’t want to wait till 30 till you made an impact. Could save you a lot.
The same goes for people and their financial situations. They see a guitar they want to get and pay for it, even if it leaves them in debt with a high-interest rate. They go on nights out when their bank account is screaming for them to stay in. You’re not alone. Just ignore your balance while your hungover, looking then never helps.
I am the last person to judge. I know I have done a lot of questionable things with money, and I’ll make a few in the future. I’m just saying it’s bad advice to follow.
What do I know? I’m just a 20-year-old who’s trying not to work forever and make his money work for him, rather than the other way around.