Got your first job and tempted to blow every one of your pay checks? Don’t do it. Follow this advice instead.
Some useful financial advice for young people
You should not wait for many years to accumulate wealth by saving from your monthly income, however smaller it may be. Here are some useful tips as financial advice young that we can offer to the young people.
Avoid financial mistakes by taking sound decisions in the early days of your life. A perfect financial advice young that every expert would like to offer is to divide your earnings in 50/30/20 parts. This means that young people should spend 50 percent of earnings for spending on necessary things of life, 30 % should go to fulfilling of wants, but, most importantly, 20% must go to savings. This can be your money plan for lifetime.
Financial troubles can knock anyone’s door anytime. However, if you have the financial habit of keeping an emergency fund right from your young days, it comes handy in meeting your requirements in rainy days. Starts keeping an emergency fund even if you have credit card debt or you have a student loan. Contribute to this fund even when your monthly salary is very low.
You should also start saving money for your retirement. Do not think that retirement is many decades away. A good financial advice young is that the earlier you start saving for retirement, the more money you have in hands on your retirement day and your rest of the life will be much more comfortable. Find out the retirement plan that your company sponsors. These plans are great, as the company will invest equal amount of funds matching your contribution to the retirement plan funds.
Know about the taxes as well. Young people must know about the taxes on their income. If the income is taxable, find out the legal ways to save the taxes. The government may be giving rebate on taxes if you buy saving instruments or you invest elsewhere. This way, a financial advice for young people will be that you will not only pay fewer taxes, but also you will be investing the money for increasing your earnings in the coming years. You can find out vehicles such as money market funds, stocks, mutual funds, saving accounts that pay high interest, bonds etc.
Follow these financial rules to make your entire life safe and secure from any monetary disaster in the future.
Financial advice to young people
1. Keep an eye on your money and know where it is going and to which cause
2. Do not spend the money lavishly on the things you do not really need
3. Save as much as you can for a better future.