Photo by LendingMemo If only every young adult could understand the importance of their finances. I wish I could say that if every single person could be told how to manage their money, they would never run into any problems. Unfortunately, even if someone gets “the money talk” they don’t necessarily listen. The point here is that there are some very important quick tips that can help young adults along the way. Heck they can even help you if you are not a young adult anymore. So start listening now!
Find Your Niche
Having trouble deciding what you want to do with your life? The answer might be right in front of you. What are your natural abilities, you might want to explore those first. You know where you excel, so why not craft those skills? A career that allows you to amplify your gifts will fulfill you. As you move up and grow, you may make some changes to go along with your passions. But for now, stick to what you know best.
Get A 401K Immediately
This is so important. If the very first company offers a 401k plan…sign up as soon as possible. If not, then move some cash into an IRA. I know it seems so far away, but someday we will all be super old and you want to be prepared for that time. After all, time flies. Set up automatic contributions to a plan early on and you can build on some serious wealth. It is much easier to never have the money in your bank account or in your hands. Keep it safe and out of your hands so you don’t make reckless purchases.
Use Credit Responsibly
This is extremely vital. So many people overuse credit cards and find themselves in a very difficult position financially. This can even lead to bankruptcy! Think about it, “I can have this right now and pay for it later!”. Not so fast, keep in mind that you are going to be using your future earnings to pay for the items that you feel you must have immediately. Plus you will be paying a disgusting amount of interest. Be careful with credit cards. It is a good idea to have one and use it responsibly in order to build your credit, but do not fall into the nasty web of credit card debt.
Always Be Prepared For the Unexpected
Unfortunately there is not real job security these days. You may lose a job and it may not even be your fault! Save and keep some money in an emergency fund. The best way to do this is to automatically divert a portion of your income into a savings account. This would be in addition to the amount that you already have going into a 401k or an IRA. I know, you must be thinking that you will not be taking home any money if you have all of these other accounts. Trust me, you will and if you do this, you will be thankful later. Once again, a little money goes a long way if you are smart with it.
There are so many things to be grateful for. First off, be grateful for the job you have and the fortune it brings you. Invest your money wisely and do not spend recklessly. These quick tips can help you avoid living paycheck to paycheck later on in life. It’s never too late to put these tips into play, but the earlier the better. Best of Luck with your fortunes!