6 Personal Financial And Investment Tips For Young Adults
It is unfortunate that personal finance/investment
is yet to become a mandatory subject in high schools or colleges. This means
that many young adults might not have the required financial management or investment
skills by the time they enter the real world after school. If you are out there
and think that understanding personal finance management/investment is a hard
task, you are wrong. All it takes is to
get started on the right direction and the will do a bit of reading without necessarily
being good in calculations. To help you get started, below are six important things
you need to know about personal finance/investment to help you live a successful
and comfortable life.
Korta klänningar ser strålande på tonåringar vara till hjälp betonar bysten området balklänning
Have self control
If you are one of the lucky people,
then your parents taught you how to delay your gratifications as a kid. If not
it is better to learn how to have self control in order to keep your finances
or investments in order. It is good to try to avoid credits as much as you can.
You can do this by developing a habit of saving for an item until you have enough
to buy it instead of using your credit card the minute you want it. If you
develop a habit of making all yours purchases in credit cards regardless of whether
you are able to pay your bills in full at the end of every month, you might end
up paying for the item even after ten years. If you want to take full advantage
of your credit cards ensure you always pay your balance in full as soon as the
bills arrive and never carry more cards than you can manage or keep track of.
kysyä aksentti kasvillisuuden Se on uskomattoman tärkeää pysyä ajan tasalla hääpuvut
Take control of your own financial
If you fail to find ways to manage
your money, then other people will always find ways to mismanage it for you. Some
of them might have bad intentions, for example, dishonest commission based financial
planners. Instead of depending on other people to give you advice, take full
control of your finances and read few basic books on personal finance /investment.
Once you are well versed with personal finance knowledge, do not allow anybody
to catch you off guard be it financial institutions or friends. Knowing how
money works is the first step in making money work for you.
Understand where your money goes
After going through a few personal
finance books, you will understand how to ensure that your expenses do not
exceed your income at all times. The most effective way to do this is to develop
a well planned budget. Keeping your recurring expenses as low as possible will
save you a lot of money over time. If you do not waste you money on a posh apartment
today, you will be able to afford a nice home before you know it.
Start an emergency fund
No matter the amount of debts you
might have to repay every month, it is advisable to ensure that you save
some amount in an emergency fund every month. Having such an emergency fund
will keep you out of problems financially and ensure you do not have stress
when emergency situations that require money arise. Do not keep you money in accounts
that do not pay any interest on your savings, instead put the money in a high
interest online savings account or in a money market account.
Start saving for retirement
Just as you walked to a kindergarten
with your parents hoping for great success in a world that seemed so far away,
the same you need to prepare for your retirement in advance. As a result of how
compound interest works, the better that you start saving as early as possible.
This is because you will just be required to invest less principal in order to
get the amount you will need to retire. Companies sponsored retirements are the
best options because the contributions tend to be high.
Get Grip on Taxes
It is good that you know how income
taxes work even before receiving your first paycheck. When you are offered the first
salary in any employment, it is good to know how to calculate whether the
salary will give you enough money after paying your taxes in order to cater for
you financial obligations and goals. The good thing is that there are several
online calculators that will show you your gross income, taxes and the amount
that will be left or the net income.