&w=64&q=75)
"Notification! Reference: Salary." You’ve either already received this message this month or you are eagerly waiting for it to sort yourself out.
Unsurprisingly, the moment your salary drops into your account, responsibilities come knocking, each demanding a share of your hard-earned cash.
As a young person, managing money—especially as a Ghanaian facing current harsh economic conditions—can be challenging. However, making wise financial decisions today is one of the best ways to secure a stable future.
In today’s world, where the cost of living is rising and salaries often fall short, understanding how to handle your money is more important than ever. If you want to build wealth, secure your future, and avoid financial stress, here are five major money mistakes you must avoid—and trust me, number 4 is one you cannot ignore!
1. Living Above Your Means
One of the biggest financial mistakes young people make is spending beyond their earnings. Remember this simple rule: "If you can’t afford it three times, don’t buy it."
In Ghana, many young professionals and students feel pressured to maintain a certain lifestyle—wearing designer clothes, dining at expensive restaurants, buying the latest iPhones, and even moving into plush apartments just to "keep up appearances."
Social media platforms like Instagram make this even worse, as people constantly compare themselves to others, believing they need to impress their followers. Unfortunately, this kind of spending leads to living from paycheck to paycheck or accumulating unnecessary debt.
Suggestions:
Create a budget that prioritises essential expenses before luxuries.
Live within your means—just because you can afford something today doesn’t mean you should buy it.
Delay gratification—save up for bigger purchases instead of rushing to impress others.
ALSO READ: Meet heartbroken 70-year-old Veronica who has been married and divorced 20 times
2. Not Saving or Investing Early
A lot of young people think they have plenty of time to start saving or investing. They assume that savings are only necessary when they start a family or that investments are for older people with stable incomes.
Imagine setting aside just Ghc 100 or 200 per month in a high-interest savings account or a mutual fund. In a few years, you’ll have a solid financial cushion.
On the other hand, if you spend everything you earn now, you will struggle to meet future financial needs like rent, emergencies, or even starting a business.
Suggestions:
Open a savings account and start putting aside a percentage of your income, no matter how small.
Look into safe investment options such as treasury bills, mutual funds, and fixed deposits.
Learn about compound interest—your money grows over time when invested wisely.
ALSO READ: 5 violent senior high school clashes in 2025 – Is student discipline declining?
3. Depending on Just One Source of Income
Relying solely on a monthly salary or one stream of income is very risky, especially in Ghana, where job security is uncertain. A single financial setback—job loss, business failure, or an emergency—can leave you struggling.
The reality is that salaries often don’t keep up with inflation. Prices of goods, transportation, and rent continue to rise, making it harder to survive on just one paycheck. This is why many young people have turned to side hustles and multiple income streams to stay afloat.
Suggestions:
Find a side hustle—consider freelancing, running an online business, or renting out a property.
Learn a skill that can earn you money—such as graphic design, writing, tutoring, photography, or catering.
Explore passive income sources, like investing in real estate or setting up an online store.
4. Borrowing Money for Lifestyle Upgrades
Many young people in Ghana take out loans or use credit just to upgrade their lifestyles. Whether it’s buying the latest smartphone, hosting a lavish birthday party, or travelling to Dubai for a vacation, borrowing money for non-essential expenses is a dangerous habit.
Loans should be used to build wealth, not to fund temporary pleasures. Taking on unnecessary debt means you’ll be stuck in a cycle of repayments and financial stress, leaving you with little room to save or invest.
Suggestions:
Only borrow money for productive reasons—such as education, business investments, or real estate.
Avoid using credit for luxury spending. If you can’t afford it now, you probably don’t need it.
Focus on building wealth, not impressing people with expensive purchases.
5. Ignoring Financial Education
Not understanding how money works is one of the worst mistakes you can make. Many young Ghanaians do not take financial literacy seriously, which is why they struggle with money management.
If you don’t understand how to save, invest, or budget, you’ll likely end up making costly mistakes. For example, many people don’t know how interest rates work and take on bad loans with huge repayment burdens. Others invest in scams because they didn’t do proper research.
Suggestions:
Read finance books or follow credible financial experts on social media.
Listen to financial podcasts or attend investment seminars.
Ask questions—seek advice from people who are financially successful.
Final Thoughts
Avoiding these five money mistakes will set you up for a more secure financial future. No matter how much you earn today, good financial habits will determine your long-term wealth.