Whether you’re just submitting applications to college or finally stepping out into the world, gaining personal and financial responsibility is vital if you want success in life. Unfortunately, many young people are instead finding themselves burdened by finances due to irresponsible use of earnings. However, there are several ways you can secure your future by saving, implementing smart money management techniques and protecting yourself from life’s uncertainties.
When it comes to your money, a little self-control goes a long way. Instant gratification seems fun but cumulatively can cause trouble for you in the future. Not taking care of your bills and other necessities can also cause great arrears which can lower your credit and put you at high risk for increased debt.
According to Creditcards.com, consumers are more willing to spend a considerable amount of money when using a credit card over handing over cash. By doing so, you aren’t actually saving any money at all. In fact, you can get into serious debt if you aren’t paying back those costs on time. When that debt accrues and isn’t paid back, this can put you at risk for garnished wages, bill collectors going after you, and even being sued.
Instead, stick to a budget, like the 50-20-30 rule which allows you to see exactly how and where your budget should be allocated. This rule builds a customized financial plan on a unique level since we all have various wants and needs with differentiating incomes.
Shake Off Leeches
Just because you need to save doesn’t mean you can’t go out and have fun. However, it’s important to become aware of money leeches, entities or people that drain your financial resources. A money leech ties itself to you and tries to stick around, but it’s up to you to no longer feed it.
As a young adult, you will come face-to-face with various forms of temptations; some not so harmful, while others may be dangerous. However, not giving bad habits the time of day will help you to gain control of your own life. According to the National Institute on Drug Abuse, substance and alcohol abuse has risen for college-age students, due to peer pressure. An addiction or unhealthy habit can send you into a downward spiral with financial hardships, so become aware of how such practices can also send you into debt.
Gaining the confidence to just say no to money leeches will give you the confidence to say no to other activities or things that don’t serve you. Save yourself headache (and money) in the long run by learning what constitutes a necessity versus an option.
With the right tools, anyone is capable of setting themselves up for a great future, financially. However, not everyone learns the proper way to manage money. Unfortunately, schools don’t teach financial management and money-saving skills are rarely taught at home, which is why so many young people today are accruing more debt than they can handle. However, it’s never too late to learn how to become a financially independent adult, which can keep you from living paycheck-to-paycheck and also puts you in the position to help others.
One way of acquiring knowledge about money management is to utilize devices, apps and websites which not only teaches you to budget wisely, but helps you to see where your money is going and has long-lasting effects on how you view money and ways it’s distributed. You may even find speaking with a financial counselor to be useful. Financial counselors are there to help you avoid investment and tax mistakes as well as provide you with a deeper knowledge of how finances work. However, finding one that has your best interest in mind is of the utmost importance.
While money is a valuable asset, your life is even more precious. Secure it by making the right decisions and creating a viable financial plan that will help you go far beyond your wildest dreams.
Article written by - Larry