Financial advice for young people that we wish we knew sooner
Being young and clueless is a terrible period to handle money. But we learn from mistakes, don’t we? Well, we wish we knew some small pieces of advice when we were younger, as it is always better to learn from other’s mistakes. And because of this reason, we have some financial advice to give the youngest of us.
Young people lack all a thing that makes the difference between a decent debt and a debt eating up all your resources: self-control. While many learn self-control from parents, others are not this privileged. If you have a credit card, put it away. You’re supposed to use it only in emergency cases. This is the bottom rule if you want to keep your finances in order. Find other gratification methods. Go for a walk, run or do any other activity that is free. We know that purchasing an item that you want on credit is simple, but there are more important things in life than this.
If you have a debt, apply for a credit builder loan
Oftentimes young people struggle with college debt and with low wages, as they lack the needed experience to apply on better-paying jobs. If this is your case, and you have a debt which seems too difficult to pay off, you must know that there is also the easy way in which you can manage this. Find a loan institution that will finance a credit builder loan and will offer you money. As you start paying for it, they will report to the credit bureaus. Start searching online for such establishments and find the ones that seem to fit your bill.
Know where your money goes
In other words, you must make sure that your expenses don’t exceed your income. Otherwise, you will end up with a big hole into your budget, which will prove difficult to handle in the future. You will shortly learn that with some small everyday modifications brought to your daily spending habits will make an enormous difference at the end of the month.
Consider an emergency fund
An emergency fund will allow you not to rely on credit if you ever encounter emergency cases. No matter how much you want to get rid of your debt or how much you want to purchase a specific item, keep in mind that an emergency fund might be your best ally in situations that are less than comfortable. Of course, you will have to pay off your non-negotiable monthly expenses, such as bills and rent, but make sure that a small percentage of your monthly income goes into your emergency fund.
These are only a few pieces of advice the most experienced of us want to give to those with all their lives ahead. Just because you are young, that doesn’t mean that you can be financially illiterate. A grown-up person, regardless of how young, must know their finances.