Personal Finance

Financial Tips for Young Adults

  • Mark Edwards ·
  • February 16, 2021

Navigating the financial world can seem daunting when you first take responsibility for your monetary input and output. It is essential to know where to put your money; the best way to use it; how to spend it wisely. These tips will help you deal with finance the smart way.

Discover Core Values

Thinking about your values will help guide financial decisions. Core values are the concepts you strive to live by, such as family, freedom, success, integrity, respect, friendship, environmentalism, religion, spirituality – just to name a few.

Familiarizing yourself with what is important to you will highlight how best to earn money, why you want to save, and where to spend your money. It will also prevent the growth of bad spending habits.

For instance, if you value success, you could use your money to set up a small business. If you are an environmentalist, you could ensure your spending is eco-friendly. Whereas, if you value friendship and family to a greater extent, you could create a separate bank account specifically for outings and get-togethers.

Budget Personal Spending

One sure way to alter any unproductive spending is to take a good look at your transaction history. Payments can go unnoticed, mainly if they are contactless. Categorizing expenditures can help you budget each month. Here are some categories and examples:

  • Essentials: house bills and groceries.
  • Subscriptions: recurring payments like gym memberships and media subscriptions.
  • Transport: petrol, train tickets and bus passes.
  • Entertainment: day trips, dining out and movies.
  • Extra goods and services: clothes and household items.
  • Other: charity donations, vacations.

Spend Smarter

Once you work out how much money you spend and where you need to cut down, you can start to look at how to spend smarter. Tools like checkout saver will save you money when shopping online for those extra goods, as it combines saving techniques to get you the best deal.

If you struggle with self-control when it comes to spending, budgeting apps will help; they will make you think twice about overspending. In time, that money can go towards things of greater value to you.

Save Wisely

Saving money has numerous benefits. Firstly, it acts as a safety net in times of financial trouble. An emergency fund usually amounts to two months’ paycheck and will get you by until you find a solution. You can store this in a separate bank account, so it is left untouched unless you need it.

Investing in your future is vital. If you are employed, find out the different retirement plan options as soon as possible. First, save a small percentage of your paycheck and increase it as your pay goes up. You will hardly notice it leaving your bank account, and when you decide to take more time for yourself, you will have accumulated a fund to support you.

Final Checklist

  • Find out your values.
  • Budget: categorize and cut down unhelpful spending.
  • Spend smart, avoid impulse buying.

Save money for your future, keeping what you value in mind.

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