James Paul
Once you’re out of school, ready to face the real world handling money would seem like fighting a war on its own. If you were taught this school to handle your finance then it would have been quite easy to experiment those tips for real. At this age, when you have the money in hand plus no-one to get the records of it then you would be clueless and end-up spend the money like water.
The first question that would crop up in your head would be:
“How to begin?”
We share with you 5interesting financial tips that would clear all your myths about handling your money and give you a better understanding about finance for a better future.
5 Interesting financial tips for you:
Self-control is the best motto!
Most of us would have learnt this skill from our loved ones be it your parents, grandparents or sometimes siblings. If you weren’t taught this, don’t worry, it’s never too late to learn!
Knowing your budget and limits would help you to get away from temptations. At this age, everything might seem attractive to buy but you should try to control your emotions. It doesn’t mean you can’t buy it; the correct way would be to save for it and then buy. There would be an easy option of swiping your credit card to buy anything you want but it would be quite difficult if you choose this option every time(the interest might cost you more dollars than the desired product itself). You might end up with huge debt on credit cards.
If you still want to opt for credit cards because of the rewards or ease then don’t forget the golden rule: “Pay off the credit card bills in full once they arrive.”
Keep a track of your expenses!
Once you have mastered the art of self-control, it is advisable to keep a track of all your expenses right from a cup of coffee to rentals. You must know where your money goes so that you can know where to save more.
“Your expenses should never exceed your income!”
If you keep this in mind, you will never fall in the trap of unnecessary debts. Start emphasizing the use of budgeting in your life.
Make a budget!
The first thing to do is to make a budget. Make a list of all your expenses on a daily or monthly basis. A budget would keep you on track with your finances. Don’t forget, every penny adds up to a huge amount similarly every small expense would add up to a huge expenditure.
Never neglect your health!
A health insurance would seem expensive initially but can save a thousand dollars in times of crisis. Don’t neglect it seeing the monthly insurance premium; it is better than paying thousands of dollars from your pocket for a minor injury!
You can always do a market research for all possible health insurance providers and choose the one which fits your pocket. Meanwhile, spend some money on the things that can keep you healthy such as:
- Buy seasonal fruits and vegetables.
- Get some exercise, yoga or hit gym (you can several discounts on memberships)
- Cut down smoking
- Reduce alcohol consumption as well
- Maintain a healthy weight
Your financial future lies in your hands!
Why give chance to any financial planner to handle your money, when you can do it yourself? No one can be a better judge than you when it comes to your finances. If you don’t pick the knack of handling your own money, others would find ways to misguide you for the same.
If you learn to handle your finances then there won’t be a need to rely on other’s advice. Try to do a research on personal finance and implement it in your real life. This way you can have a better understanding of how the money works and hence how you can make your money work for you!
Be prepared for an emergency fund!
Once you have done a research on personal finance, you would have seen that almost everyone would talk about “Pay yourself first”. So what does it exactly mean?
It is always beneficial if you learn to stack some dollars on a monthly basis for an emergency. This emergency saving would solve major problems and keep you out of debt.
Summing up
The ultimate way to learn about managing your finances is by experimenting and experiencing it yourself. If this plan fails then remember you can start a new plan. When it comes to finances, you will be a pro only by trying different ways. These 5 financial tips would give you a kick-start and show a way to handle your finances for a better future.
