When we’re younger we have no idea about money, finances, budgeting, and credit. The one thing we may hear is to avoid credit cards, don’t borrow money, or save. Some may have never learned the importance of having a relationship with money and finances. Here is some financial advice to my younger self.
You need to develop a relationship with money. Not just going to work, making a paycheck, and paying your bills and debt. But know how to budget, track, and invest money. Handle Your Business…Get Your Finances Together Educate yourself on different kinds of accounts and investments. Know what you want to earn and learn about money. Have a goal in mind.
Money or financial mistakes are easy to make but hard to recover from. When we make a unplanned purchase, moving, or purchasing a new vehicle it seems like its the right thing to do at the time. Especially if it was something that was done on a whim. However, when you find yourself in a financial bind, most often you have to look 6 months to a year prior on what you had done. Our set backs doesn’t happen right when we make the purchase but it catches up with us.
Piggy backing off of advice tip #2, plan out your large purchases or life changing obstacles if you can. Prepare for expenses after a move or purchasing a new vehicle. It’s difficult to prepare for the unknown when we make such life changing decisions. But, with preparations, budgeting, planning, and saving it can be done economically.
Track your spending habits. Know what you are bringing in at all times. Also know what’s coming out at all times. Be mindful of budgets in all areas of your life. Be able to answer not only bill expenses, but grocery, personal items, entertainment, and any other expense that you have. Depending on your lifestyle and income you can track how often needed to, to keep up. Not to mention we have many tools available to us now to keep up with our finances.
Live below your means. Just because you have it doesn’t mean that you should spend it. Don’t live so tightly that you aren’t able to handle an emergency.
If managed right, credit cards can be a good thing. Learn how to use a credit card to establish credit and payment history.
These were just a few financialtips I would tell my younger self. Actually, this is the same tips I gave to my nieces who are entering adulthood. Your financialgoals and relationship with money is something that is personal to you. Just like with anything else you are going to make mistakes, just seek the knowledge and advice needed to help you.