20 Realistic Finance Tips for Young Adults
Finance Tips for Young Adults
The world of finance is vast and confusing. And to be fair, we don’t learn much about this in school, so it’s no wonder that young adults today are struggling more than ever before.
If you don’t know where to start, you’re in the right place. From saving for retirement to saving on groceries, here are 20 finance tips that can help send you in the right direction.
Understands Needs vs. Wants
In order to properly budget, you must first understand the difference between needs and wants. Needs should be things within your day-to-day life that directly impact your quality of life.
Examples include transportation and housing. Most others should be considered “wants”.
Start Budgeting
Making a budget, and sticking to it, can help prevent you from living paycheck to paycheck. For most people these days our expenses are fairly close to our income, which can make budgeting difficult.
But there are almost always sneaky expenses that we don’t even realize we are wasting money on. Whether it’s unnecessary coffee runs, or paying for premium subscriptions, find out where you cash is going and then adjust things accordingly.
Manage Your Debt
Paying off debt is not something that can be ignored. Unpaid debts that go to collections will end up hurting you in the long run.
If you’re struggling with your debt, ask your lender about a payment plan or a hardship program.
Use Cash Instead of Credit
While credit has its benefits, for many young adults, it can have the opposite effect.
Using cash can help you avoid spending money on things you cannot afford. It also avoids interest accrued when you miss paying off the balance each month.
