Though adulthood may seem far away, the truth is it will be here before you know it. And while that can be exciting to think about, it’s also a little scary to consider everything you’ll be responsible for once you begin to navigate life on your own – like managing your money and covering your own expenses. Luckily, there are some basic financial principles you can implement now to make life easier later. Just follow these tips!
- Commit to saving. Let’s face it – college, cars, clothing and groceries aren’t cheap. Prepare for these upcoming expenses by saving at least 10 percent of all the money you earn or receive. This will not only give you a head start on future bills but will also help you develop the savings skills you’ll need throughout your lifetime.
- Make a budget. A budget is simply a plan where you determine how much of your money will go into savings and how much will be spent in various categories (such as housing, transportation, groceries, entertainment, etc.). Not all these categories will apply to your life right now, but it’s important to start budgeting for the categories that do pertain to you. And as your income and expense requirements change over the years, you’ll want to periodically review your budget and make any necessary adjustments.
- Live within your means. This tip may seem obvious, but it isn’t always easy to put into practice. Lots of people find themselves spending more money than they earn, which can result in an endless cycle of debt and financial troubles. Force yourself to forgo unnecessary expenses that you can’t afford and don’t ever try to keep up with the lavish lifestyles of others!
- Pay attention to your credit score. Being late with payments or defaulting on your credit obligations has a huge impact on your credit score and can impact everything from purchasing a car or home to car insurance prices. Landlords and many employers also look at credit scores when evaluating candidates. So if you already have your own credit card, be sure to always pay your bill on time. This is one of the single best things you can do to build a strong credit history.
Interested in more financial tips to prepare you for life in the real world? Contact us today at 845-561-5607!