Top 5 Financial Tips for Young Adults

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If you are in your mid-twenties just like me, you will most likely already have had a conversation with your friends as to ‘why were we not taught this in school?’ Whether this is learning more about credit cards, paying off debt, paying taxes or the process of buying your first home, there are so many basic financial tips for young adults that are overlooked during our school years that can lead to us not being the most careful with our cash!
Top 5 Financial Tips for Young Adults

However, it doesn’t have to be all doom and gloom if you follow these top 5 financial tips for young adults.

Financial Tips for Young Adults

 

1.      Where Does Your Money Go?

One of the first things you need to do if you want to be in control of your finances is to create a budget. When you realise how much money you are spending without having anything to show for it, it can be quite a shocking realisation. 

Making small, but manageable changes to your everyday life really can have a huge impact on your bank account. Try cutting out a few coffees every week or ditching an expensive night out. You will be surprised by how much you can ultimately save in a short period of time.

2.      Learn Delayed Gratification

Can’t pay for an item that you want in cash? Then, for now, you can’t afford it! This is how we can end up easily in debt with credit cards. This is the time to implement self- control and learn to save money rather than being hit with interest. 

If you are going to keep a credit card to build up your credit score, make sure that this is always paid off in full every month.

3.      Take Charge of Your Finances

Even if you have parents or a financial planner helping you with your money, you must learn to manage your finances. No one will be more careful about look after your cash than you, so don’t just rely on other people for advice and instead do your homework. 

Once you are up to speed on your personal finances, you will have a better understanding of how to really make your money work for you.

4.      Save an Emergency Fund

Did you know that almost a quarter of British adults have no savings? (Independent, 2018) That means missing just one paycheck could set you back into financial ruin. 

One of the first things that you should do once you start receiving a regular salary is to set some of this aside every month into an emergency fund. An emergency fund should be anywhere from 3 to 6 months of your salary and is the easiest way to keep yourself out of financial trouble. 

Just think how much easier you would sleep at night knowing this money has been out away. This is also a great way to get you into the habit of saving. 

Once you have your emergency fund, you can then think about saving for a home, holiday or retirement.

5.      Retirement Saving

When you are in your 20’s, saving for retirement can seem like a lifetime away. However, when you think that once you hit 30 you are almost halfway there, it can become a much more daunting prospect. 

You will want to start saving for your retirement as soon as possible because of the way that compound interest works. Everyone wants to get as much interest on their money as possible, right? Give yourself the option of working rather than it being a necessity in your later years. 

Company pension plans are the easiest way to save for retirement without you even noticing the money coming out. Plus, employer contributions are a fantastic way to essentially get free money towards your retirement. 

Implement these top  financial tips for young adults today to help change your financial future! 

jennifer147

jennifer147

Hi, I’m Jen, a freelance writer for hire who offers ghostwriting, copywriting and blogging services. I work with B2C and B2B businesses providing personal finance content that gains social media attention and increases their search engine visibility. Check out my new free email course for businesses – 5 Copywriting Hacks to Boost Your Business.

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About Me

Hi, I’m Jen, a freelance writer for hire who offers ghostwriting, copywriting and blogging services. I work with B2C and B2B businesses providing personal finance content that gains social media attention and increases their search engine visibility. Check out my new free email course for businesses – 5 Copywriting Hacks to Boost Your Business

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