Lifestyle blogger Kallie Branciforte knows a thing or two about debt. She and her husband just paid off over $70,000 in one year.
So to help other young adults, she’s sharing some of the biggest money mistakes she made in her 20s and how to fix them.
“I think it’s okay to make financial mistakes, but it’s about deciding that you’ve made them and owning up to them and then figuring out how to fix them,” Branciforte said.
The first money mistake is getting caught up in the lure of a deal.
“It’s like something is always on sale all of the time and you kind of feel like you need to take advantage of it,” Branciforte explained.
So when purchasing an item, make sure it’s something you need, instead of just want.
“I would rather pay full price for something that I absolutely need at that time as opposed to buying five things that were on sale that I don’t really need,’ she said.
Another big money mistake is buying “fast fashion,” those super trendy, inexpensive clothes.
“The fast fashion industry actually has 52 micro seasons every single year, so they’re like changing every week,” Branciforte explained. ““I felt like I was constantly getting rid of clothes or donating things. There was always so much extra clothing in my closet that I didn’t need”
Now she looks for high quality staples.
“Ifocus on pieces that are classic, timeless, they fit me well, and it makes getting dressed a lot easier,” she said.
Her third big mistake is using money to cure boredom.
“I think some of this has been brought on by social media,” Branciforte said. “We go on social media and we think that somebody’s always doing something.”
Her fix? Stay close to home.
“For me, I’m a blogger and a Youtuber, so that is sort of my hobby that keeps me busy all of the time, but my husband and I will do things at home too, whether we have a game night at home, just the two of us, we’ll take the dogs for a hike.”
Money mistake number four is waiting too long to pay off debt.
“Our 20s can be very debt accumulating, between, you know, maybe getting our first house, our first car, going to college,” she said.
To tackle her debt, Branciforte used the “snowball effect.”
“You start with your lowest one and work on paying that off and making minimum payments on all the other ones,” she explained. “But I think as you move into real life, you want to set yourself up for success and you don’t want this debt looming over you.”
To read more about how Branciforte and her husband paid off their debt, click here.