COVID-19 has changed our lifestyles, including how we manage our finances. People are yet to have access to restaurants, shopping, or leisurely travel. With everyone confined to their homes, expenditures are surprisingly low, even for the most extravagant of us. Even so, what’s inexplicable is that people still aren’t able to save up much. And that’s because most universally accepted financial rules don’t apply to everyone.
To understand how people are dealing with finances in the current times, we talked to a few young minds who had one universal thing to say – it isn’t feasible to save up much since people often extend the wrong kind of money advice!
These are the top three most overrated things they’d heard about personal finance management:
- “The only way to taste success is to go to University”
According to Liz Enriquez, a social media manager based in Ontario, children are often brought up with high expectations about post-secondary education. The idea that success isn’t possible without university is instilled in them at a very young age.
But, looking back at her life, she says the courses she enrolled for in university had nothing to do with what she’s doing in her life right now. Liz said that she knew several people like her who weren’t using their degrees but still making money. She suggested that young people who’re about to decide on university should learn hard skills via free or low-cost online resources.
Read – Skills That Can You High-Paying Work in 2020
- “You should cut down on day-to-day expenditure”
The founder of Requity homes, Amy Ding, grew up in China under much financial stress. She said that her parents trained her about the significance of cutting expenses from a young age. Still, it was only after her university education completed, that she realized that she could save money and spend at the same time.
She advised that graduates should use this lockdown to invest in their careers. They should engage in Zoom meetings, sit in on webinars, and reflect on their financial goals.
- “Staying away from Credit Cards is the best”
The last contribution came from financial coach, Lindsay Plumb, based in British Columbia. She had met several people who were wary of using credit cards because their parents advised against them.
According to her, the older generations didn’t explore the potential of credit cards and had the notion that credit is bad. But today, having a healthy credit score helps accomplish great things in life. She advised people not to be scared of spending through credit cards, but plan their expenses not to exceed their limits.
Read – How to Use Credit Cards Wisely
To wrap it up
In challenging times like these, wise management of finances could be the best you can do to save. Keep our pointers in mind, and don’t hesitate to explore.
