Many young adults become buried in debt early on in their lives, whether it be from student loans or other financial aids. More than 35% of American adults have debt of over $35,000, many of which have had that debt since their early 20s. Debt is something that can drastically impact your life negatively and change your entire future. For these reasons, it is important for young adults to begin to take control of their financial situations. Young adults can become comfortable with managing debt by making conscious efforts to manage their money better.
There are many simple ways for young adults to begin saving money. Knowing how much you are spending is key to saving money. Keep track of all your expenses: food, clothes, technology devices, gas etc. Recording your expenses will give you a good idea of your future financial situation and allow you to plan ahead accordingly. Another way to save money is to spend less money, simple. Only buying essentials and limiting the amount of money you spend on personals is an easy way to begin saving money. Overtime this self-budgetary method becomes more and more profitable. A 50/30/20 budget is a good example for smart money management. It involves devote 50% of your income to necessities, 30% to wants and 20% to savings.
For young adults, staying debt free or with minimal debt is extremely important. For many young adult’s debt begins with college. For that reason, it is important for students to find a school within their budget. In state, community and “loan free” colleges are all good choices for having minimal future school debt. Out of state or private colleges will be significantly more expensive. Duel enrollment programs are also something to consider when choosing your future school. Once at college there are also many ways to gain money, such as jobs. Students can be resident advisors, credit hour overload and textbook rentals. All of these are viable options for young adults to stay in control of their debt.
In conclusion, debt is something all young adults should be aware and alert of. It can be very easy for one to become buried in debt for a majority of their lives. Thankfully there are many ways to save money and have little to no debt in your future. Spending money wisely and taking advantages of the many available money making opportunities will insure you have a happy, debt stress free life.