Being young means feeling invincible and like you’ve got a million chances to get things right in life. While this may be somewhat true for some things, it’s completely false when it comes to money. You need to learn good habits early, establish and keep a good credit rating and start planning for your future now. Check out the following ways you can improve your financial life now and for years to come.
Improve Your Money Habits
1. Learn self-control. Although resistance may be difficult, adopting wise habits with money now will not only save your credit rating later, it will lead to better financial health for the rest of your life. Don’t use your age as an excuse to be irresponsible with your (or your parents) money. Practice discipline and hone it like a fine skill.
2. Take control of your financial future now. Study markets and the ways of the financial world all on your own. Advisers can be very expensive and will not always have your best interests in mind. If you can ascertain a good understanding of finances, then you will always be able to handle your own.
3. Start an emergency fund and not just for a rainy day or the next best system in gaming. Stash some money away and leave it there. Financial unpreparedness can lead to personal disaster, which may affect you for the rest of your life. Start small and let your emergency fund grow in an interest-bearing savings account.
4. Start saving for retirement now. Your elder years may seem like they are eons away from now, but the future will be here before you know it. Who knows what new challenges you and the world will be facing in 50 years? Don’t you want to take comfort in the fact that you are already preparing for the times ahead, no matter what life may throw at you? Learn about simple long-term investment plans and strategies and start feeding a mutual fund or IRA.
5. Use credit cards wisely. Credit cards can be a very convenient way to make purchases, as well as help you build a strong credit history. However, when used carelessly, they can have you living back with mom and dad again for who knows how long. Credit cards can be dangerous, so make sure you pay on time, more than the minimum and always know the rates and fees you are signing up for.
6. Finish college. No matter how tight money gets or how difficult the road to graduation may seem, one of the best things you will ever do for yourself in life is complete your education. You will earn more, have a much greater number of career opportunities and advancements and carry with you a strong sense of accomplishment and self-confidence. All of this will last you forever; getting through college only takes a couple of years.
This advice will not just take you through to your next job or place of residence, it will last you a life time. Don’t sit around waiting for the future to find you; be well prepared for everything it has to offer.
