Summary of this article
Gen Z is flooded with contradictory money advice.
These tips and tricks are most often shams.
Your 20s are a time to witness how money can work for you.
In the age of 'get rich hacks', Gen Z is flooded with contradictory money advice, which might not always be in their favour. Some might say you can't save your way to wealth, and should therefore invest in XYZ schemes and policies, while some others will promise wealth and financial freedom through multiple streams of income. But the truth is far from what social media reels have to say.
These tips and tricks are most often shams that are confusing and usually end up in a dead end. They are not only a waste of money, but also time. If you are a youngster, it is time for you to separate fact from fiction and rethink your financial foundation.
One of the biggest myths is that you need a high income to start investing, but in reality consistency beats cash flow. Even small amounts of money that is invested regularly can compound into substantial returns over time. Waiting for a big salary to start investing properly not only delays financial growth, but also delays learning that you can only gain from experience.
Another false belief is that debt is always bad. Not all debt is bad for you. Education loans, business credit, and mortgages all work in your favour if handled and planned carefully. Not only do they build assets, but also creditworthiness.
On the other side of the coin, we have the “You only live once” notion promoting leniency and carelessness. This also promotes spending freely and recklessly.
Money is the greatest asset one can have, and spending it for short-term pleasures is absolutely against wealth building. “Living in the moment” can sabotage your freedom in the future. Gen Z's digital influence gives them access to so much information; and misinformation as well.
Following viral financial advice without understanding how it shapes your life at present and how it aligns for your future can lead to costly mistakes. Your 20s are a time to witness how money can work for you, build habits around it, understand risk and let it work like quiet magic. Financial literacy isn't a skill you pick up when you are old and have time, it is a lifestyle you build in your 20s.
