6 Financial Tips for Young Adults

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October 30, 2017

 

Being a young adult is hard. Transitioning to being financially independent is even more difficult. Here are some financial tips that young adults need to follow in order to be financially set for years to come.

  1. Self control

Credit cards are great for emergency purposes and those “must have” items. But the bill that comes at the end of the month isn’t so great. Even though impulsively buying those clothes or furniture seems like a good idea, waiting to spend that kind of money once you can pay off the bill right away is an even better idea.

  1. Take control of your financial future

As a young adult, it’s easy to take other’s advice on your personal finances. However, they often don’t truly know your financial situation. Take some time to read a financial planning book or meet with a financial planner. This way you will be ready for anything that is thrown at you.

  1. Know where your money goes

Whether you are right out of college or in your mid to late 20s, it is crucial to not outspend your income. Making a monthly budget is the easiest way to know exactly where every dollar is going.

  1. Emergency fund

Most young adults have moved out on their own and start their career. With that being said, emergencies happen and you have to be able to take care of those financially. Once you have your bills sorted out, create a savings account that is only for emergencies. Not only will you be able to access this money in case of emergency, but you will gain interest.

  1. Save for retirement

It is never too early to start saving for your future. The earlier you begin saving, the more money you will have to live off of when it comes time to retire. Whether you take advantage of your company’s retirement benefit program or save on your own, it’s important to start saving early.

  1. Taxes

Fully understanding income taxes can be difficult especially as a young adult. When you’re offered a salary at your job, being able to calculate how much of that will go to taxes and how much you will actually receive is important.