Getting to grips with your money and finances when you are young is vital. You might think you have years of financial freedom ahead of you, but that time can flash by so quick. And, if you don’t start out with a sound financial base, it can be tough to become more organized as you get older.
Those bad habits you pick up can be impossible to shift, and you could be in a precarious position. So, in today’s guide, I’m going to go through a few ideas for getting on top of you money from an early age. Let’s get started with some of the basics.
Don’t get cocky, kid
OK, so you just got a great graduation from on of the finest colleges in the country. Well done. But, you still haven’t achieved anything in life – yet. It can be tempting to think you will land yourself a great job, and that everything will look after itself. You might splash out on a flash new car, or put down a large chunk of cash on an expensive house. But what if things don’t go so well? It’s vital to reign in your opinion of yourself and only spend well within you can afford. Concentrate on your savings, not your spending – which brings us to my next point.
Spend less than you are paid
Get out of the habit of blowing every paycheck and you will soon be in a much better financial position. It sounds so obvious, yet so many young people fail to try it. Plan a budget for the week, and never go above that figure. Put some of your earnings into savings, a little into a retirement fund, and keep some aside for emergencies. The rest is yours to do with as you wish – but on a weekly basis. Try not to blow everything in the first weekend! This way, you will have a lot more protection if something goes wrong.
Track everything
So, how do you stay within your weekly budget and ensure your finances are watertight? The best thing to do is start following everything you are spending, and keeping on top of your credit score. Begin by looking at your credit report. I read an interesting guide on what to look for, so view the website I found to learn more. Regarding your own finances, look long and hard at everything you spend on. It will help you notice areas that you can improve, and where you are wasting money. Again, this sounds simple – and it is – but so few people try it.
Learn more
Finally, learn everything you can about having a sound financial life. This isn’t the kind of stuff they teach in schools, sadly. But, there is plenty of info out there on the web. Make sure you understand the basics of looking after money, and you will find that you start making wiser choices with your money.
Good luck with your new financial outlook – I hope it takes you a long way! Feel free to add any more tips for young people in the comments section below.
Be the first to comment