Venturing out into the big wide open world as a young adult is an overwhelming experience for almost all of us. But, the key to success lies within your reach.
The first thing your parents should teach you before you leave the nest is how to manage your money. Whether your parents were an excellent resource for advice surrounding this topic or not, we’re here to reinforce what they should have said.
Keep reading for these essential financial tips for young adults so that you can get your financial life off on the right foot.
8 Financial Tips for Young Adults
Hesitate to take financial tips from your friends as you are all still young and novice when it comes to financial responsibility. Instead, look to mentors and successful professionals in your networks for the proper type of advice surrounding spending and assets. But, before you do that – take a look at these simple tips to get moving in the right direction.
1. Plan Ahead
The first personal finance tips to pay attention is planning ahead. You’ll need to know what you’re budgeting for in order to complete an accurate budget.
2. Self Control
Don’t impulse buy. No matter what you do, keep your wallet in your pocket when out with friends or surrounding other big purchases. Only buy what you need.
Budgeting tips for young adults usually start with a simple Excel spreadsheet. Enter your monthly expenses in this document and reference it often.
4. Emergency Fund
It’s important to save up for emergencies or you could find yourself strapped and headed down a rabbit hole of debt. Put away at least 5% of your paychecks for emergencies only.
Money management tips would not be complete without mentioning regular savings. Believe it or not, you’re going to want to retire someday and it’s never too early to start planning.
6. Credit Cards
Perhaps the best financial advice for young adults is to be extremely cautious with your credit cards. Opening too many accounts at once reflects negatively on your credit score. You should strive to keep your balances below 30% of your available credit.
If you do get into financial trouble with your credit cards, seek out only the best bad credit personal loans that will help you pay off your debt without negatively affecting your credit score.
8. Spending Habits
Overall, watch your spending habits. Remember to stick to your budget. But, that also means to budget for things that you spend money on.
If you’re a frequent flyer at Starbucks for example, be aware of how much you spend there.
Don’t get into financial trouble before your life journey even begins. Keep these financial tips for young adults in mind as you progress through the various stages of college life, marriage, and kids. The sooner you begin taking care of your finances responsibly, the more it will pay off in your future.
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