Top 5 Financial Tips for Young Adults
No matter if, you are just out of high school, attending college, or out on your own, planning for your future as well as your daily expenses is of the utmost importance. These top 5 tips should get you on the road to success.
Invest in Yourself
Many young adults toss the idea of attending college to the side and want to “get on with their lives”. Of course, college is not right for every person on the planet; however, an education is the best investment. Whether you attend a trade school, or go to a college, even take a few classes to get you headed in the right direction can benefit you greatly. The main idea behind getting a higher education is that you will choose a field that you will enjoy as a career. If you invest your time, money, and your parent’s money on fulfilling their dream career for you, it will be a waste.
Save for your Senior Years
The hardest thing for young adults to do is save for their retirement years as most live in the here and now. Being a young adult means you are just beginning your life and want to enjoy spending your paychecks and purchasing items you have dreamed of owning such as a special car. The idea of saving for retirement to you is light years away; however, whether you invest in a 401k plan at work, an IRA, or set up a special savings amount, is always a good plan. The idea is to put money away so you will not wake up one day in your 50’s and wonder why you never started saving money so you could enjoy an early retirement.
Live Within Your Means
You are out on your own and you want to live a certain lifestyle. The problem is that your paycheck may not allow you to live as you did while living home with your parents. The money you earned while a teenager was often used to purchase new clothes, going out on dates, or other things you enjoyed as entertainment. Now, you have bills to pay! Figure out a budget by subtracting the money you must have to pay all your bills monthly including auto insurance, food, gas for your car, and so on. What is left over after you put money back for emergencies and your senior years is what you have left for the entire month. Look for ways to reduce your bills such as cutting out cable TV or reduce the amount of channels you subscribe to, especially if you never have time to enjoy watching TV.
Easy on the Plastic
As a young adult, you will be receiving all kinds of offers from credit card companies. Do not get as many credit cards as your wallet or purse will hold. The temptation to use these will not just save you when you in emergencies but will often make you lose sight of your budget. You may only charge what you can afford on one credit card but remember the interest rate that must be paid on the money you borrowed. The interest rate alone can actually cause you to go without a few meals. Only obtain one credit card and only charge a small amount that you know for sure you can repay on time. Pay the entire amount you owe monthly and this will help your credit rating and your budget.
Have an Emergency Fund
You may find yourself in trouble if you do not put aside any funds for emergencies. Once again, it may be no fun to work all week and then put money aside for your senior years and for emergencies, however, when the money is needed you will be happy that you did. You never know when your car will need a new tire or the unexpected happens such as being ill and missing a couple days of work. If you have some money put back for emergencies, then you will be able to breathe a little easier and be assured you will have what you need when you need it.
Finances - 27 Jan, 2014 - No Comments
