How do you get started on saving and investing in your future? We usually don’t have “Finance for Young Adults” as part of our high school curriculum. The lack of financial literacy unfortunately leaves many young adults clueless about how to save and budget their money, how to apply for a credit card, and how to stay or get out of debt. But, those high school days are over and you are out of college and on your own trying to figure ALL of this financial stuff out.
There are things you can do to understand money and how they can help you live your best financial life and take full advantage. The younger you are the more time your savings and investments have to grow. Taking time to learn some crucial financial rules can help to build a healthy financial future for you.
Self-control is an important skill
The earlier you learn the easier it is to keep your personal finances in order. Save for purchasing the item you want instead of putting it on a credit card. Debit cards take the dollars from your checking account automatically and keep you from having a balance with interest on a credit card. Having a habit of putting all purchases on credit cards and not being able to pay the bill at the end of the month racks up a balance you may have for years to come.
Control your financial future—a good rule to keep in mind
If you don’t learn to manage your money, others will find ways to mismanage it for you. Instead of having to rely on others for financial advice, maybe read up on the basics of personal finance. Example: “Rich Dad, Poor Dad” by Robert Kiyosaki and Sharon L. Lechter. Know exactly where your money goes by setting up a monthly budget. When you see where your morning coffee or soda adds up over a month, six months, or a year, you will see that by making changes that are manageable in the everyday spending it has an impact on the financial situation and seems like you give yourself a raise.
Start saving for retirement early
Planning well in advance is important. Companies that offer company sponsored retirement plans are a great way because your taxes are pre-tax dollars and companies will match a part of what you contribute and that’s like getting free money. Protecting your money from taxes is easy to do with a retirement account and from inflation by making sure all your money is earning interest. Savings accounts that have high interest rates, CD’s, mutual funds, and money market funds are just a few examples. Learning about investing is a skill for building savings and building wealth.
Set up an emergency fund
This will help keep you out of trouble and help you not to worry when an emergency arises. Put the money into a savings account, or in a place where you have access to move it quickly if that emergency happens.
The bottom line is if you manage your money and become an expert about your financial situation then you can become that personally prosperous person and have the financial freedom in your life.
Email Vickie at This email address is being protected from spambots. You need JavaScript enabled to view it. or call her at 717-790-2171 to get a policy started today.
