Avoiding financial pitfalls of the 20s

According to the experts, your 20s can set a comfortable platform for the rest of your life. Or set you up for lots of debt if you do not learn to manage your money.
For many people, no longer being a teenager, and being paid an adult wage, is a great opportunity to go a bit financially silly and stave off the pressures of adult responsibility.
If you do manage to save some money, should you put a deposit on a house, or look to invest it?
Justin Davies from Ratings agency Canstar said either option is okay provided you do not blow the money.
She said the financial decisions made in your 20s can affect you well into the next decade.
The biggest threats to your financial wellbeing are personal debts involving credit cards and car loans, and under-insuring your assets.
Ms Davies said if you are going to spend big money on something, such as a car, then budget to get it insured and also get it serviced regularly.
If not, you could end up without a car and still having to pay off a big debt.
The same goes for anyone heading off on a backpacking holiday without travel insurance.
Danny Moss from Vertical Financial Solutions said if you save some money and are not buying a house, consider investing in safe stocks and keep accumulating them.
That is after you pay off the most expensive debt first, which is usually your credit card.
Read books about investing and make sure you read the fine print of what you are getting yourself into.
Finally he said never try to double your finances.
Source: http://www.news.com.au/money/investing/the-money-pitfalls-to-avoid-in-your-20s/story-e6frfmdr-1226758734329

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