10 Money Moves No One Should Ever Make

When you are still young, it can be difficult to keep your eyes on the future when your present is already overwhelming. A huge percentage of young people today is considered under-employed meaning they work in jobs that don’t require a college degree. These graduates often face huge amounts of student debt, housing, health care and transport to add to the expenses. But there are key decisions that you can make now that can save you later in life.

1. Choosing the wrong college and major
When choosing your major, consider your talents and interests as which types of careers are growing in today’s job market. If you aren’t decided, don’t rush into a costly four-year program. Enroll in a community college, it will give you time to consider your options and get to pay lower tuition at the same time.

2. Moving into a town you can’t afford
It might not be the best decision for your financial security to take your entry level job skills and more to an expensive town just after college. Instead give yourself a solid start and take the time to save at least a few months’ worth of living expenses first by living at home with your parents or consider renting a cheap place with friends.

3. Not investing in renter’s insurance
Taking a cheap renter’s insurance policy can protect your finances in a big way. Renter’s insurance will replace your belongings in the events of any type of damage because your landlord’s insurance doesn’t include your belongings.

4. Being shy to negotiate salary
Coming out of college applying for entry-level gigs, there may be fewer opportunities to negotiate. Given the chance, make sure you have an idea of what your position typically pays before saying outrageous figures. Don’t give up if they say your salary is negotiable.

5. Living good on student loans
The worst thing you can do is using your student loan for non-necessities. Don’t use it to finance your car, living expenses, and worst of all traveling overseas for holiday.

6. Using and abusing credit cards
Being young and having a credit card can be the best mix for disaster. Running up high credit balances, missing payments can destroy your credit store. A low credit store can limit your access to loans when you need it most.

7. Taking a bigger mortgage
It may be harder to get a mortgage these days, which might be a good thing. Make sure you get approved by your bank first. Get a mortgage that you can afford.

8. Using a debt settlement
It’s not good to be in debt, but when you decide to get out, do you really need a third part involved? Debt settlement firms will say yes and will not only offer to walk you through the process, unfortunately they will collect your monthly payments and let accounts fall before for several months before trying to negotiate with your creditors.

9. Thinking being young is invincibility
A lot of young people are uninsured. Going without health coverage is financially risky. The uninsured pay for more than one third of their health care out of pocket.

10. Not saving for retirement
With the rapid cost of living expenses, you are probably going to need more money when you retire than your parents and grandparents ever had. The good thing is you still have a lot of time on your side, you might want to start saving now. You are never too young to start saving for retirement.