Start being smart with your money!
Within our modem society many young adults coming out of high school who are anxiously building careers find themselves burdened with the struggles of saving money and being hit with tons of debt such as student loans that come after college, credit card debt, or car loans. However, you don’t need to find yourself drowning in the circumstances. There are simple strategies to make small saving and investments into larger sums of money, being a young adult in high school this can be done and often with the help of automated services that make it easy to do.
In order to avoid costly mistakes and become financially responsible over yourself take note on these tips. Most importantly before you consider anything, you must discipline yourself. For example, instead of using a credit card for everyday purchases you must learn to only use it for nothing but emergencies. Begin an emergency fund no matter what your financial situation is, it’s important to have it just in case an unexpected medical emergency or major car repair happen in your life which have to be made for example. Commit to saving money regularly, aim to saving a minimum often percent of any money you earn or receive so you’re saving before you’re tempted to spend. Decide where to keep your money intended for certain purposes such as for future college expenses- it’s actually best if you do scholarships and obtain grants because it’s money you don’t to pay back unlike a loan which is one of the main reasons young adults end with the weight of debt after college; it can be thousands of dollar in debt. Another thing many people forget is to become tax smart, know how income tax works and understand that if you are working and making money that what you receive as a salary is not necessarily what you are going to take home; it will give you a better baseline to create a budget.
Finally one way to save and invest in your future is one many, if not almost all young adults forgot is to save for retirement. It may seem like it’s something you would not need to think about especially coming out of high school and even college, buts it can be the investment that will save you tons of money and even time. The sooner you start at a younger age the more time your money will have to grow. If you were to invest five hundred a month at a rate of eleven percent starting at the age of thirty until you’ve reached fifty you would earn roughly four hundred thousand dollars. If you invested the same five hundred a month at the same rate but ten years earlier at the age of twenty by the time you reached fifty your investment would be worth $1,402,250. In that example you would be giving up a million dollars for waiting.
So think about ways to cut your expenses to be debt free and add way more to your saving as a young adult. More broadly, look at your monthly expenses for everything from food to phones and think about ways to budget and save accordingly to what suits your wallet And, if you are paying interest on credit cards or fees for spending more money than you have available in your checking account, develop a plan to stop. Remember to always have a dream to what you want to accomplish in life; make that dream a goal and don’t forget to live and not just exist…along with save!