The top 6 finance tips for young people.
The top 6 finance tips for young people…
It’s crucial to learn early. These The top 6 finance tips for young people will set you on the path to financial freedom.
1. Education – Pay to Learn
You can learn for free online. I encourage it. But paying for high quality education will save you time. Time is money.
Putting off education lowers your pay potential. So try to learn daily. With it, you will increase your job security.
A college degree is great… but too expensive. A degree helps you get your foot in the door. But often you use very little of what you learned in the job.
2. Invest Today – The Younger the Better
There are only two ways to make money. Working and making your money work for you. Invest today to relax tomorrow.
Time compounds your investment returns. An extra 1% will lead to an extra 20% over your lifetime. It’s easy to ignore long-term results… but smart investors know it’s well worth their time.
3. Know the Value of Money
Money doesn’t buy happiness. Although, money can provide comfort if managed properly.
You earn money for your time and work. If you earn $25 an hour and want to buy a $700 TV, it will take 28 hours… or well over 30 hours including tax. Everyone has competing demands for their money such as rent. Each purchase is truly a trade off of your time. Make them wisely.
4. Avoid Credit Card Debt
Don’t overuse credit cards. Plastic now and pay later. It’s too easy to take on debt. Paying it off is the hard part. You pay huge interest on it.
Save before you buy. It’s a simple strategy. It works. It will save you a boat load in fees.
5. Emergency Fund
Prepare for the worst. You could lose your job. Get injured. Many things can go wrong. If you’re living paycheck to paycheck, it can devastate.
A good rule of thumb is to keep enough cash for three months of expenses.
6. Set Goals and Budgets
Know where your money is going. Budgeting lets you do that. Take a little time each month to plan.
It will help you make ends meet. Organizing your expenses also lets you know what can be cut.
These top 6 finance tips for young people really apply to anyone. If you’ve read this far, you’re accomplishing the first tip. Education. Don’t stop here, keep learning about finance. You’ll pat yourself on the back down the road.