Many people in their teens or early twenties are clueless about money management. This makes you wonder why something so important as personal finance is barely taught in basic education. As not everyone is lucky to have parents who train their kids in financial planning early in life, money management is something most of us learn only when we consult with a financial planner or take on bigger responsibilities such as raising a family or starting a business. Some even realize it quite late as what happens with people who are close to retirement but nowhere near financial stability.
Control is key
Contrary to what many are saying, young people don’t really have all the time in the world, but a financial planner would agree that generally they do have more time to develop their financial strategies and strengthen their finances. The first thing to learn here is self control. This means saving up before making a purchase and not the other way around. It also means sound decision-making. Think before making a purchase, especially when it comes to huge ones. This is applicable even when you have the money or the item is on sale. Practicing good spending habits early will have a huge positive impact on your financial stability in the years to come.
Educate yourself
Learn how to compute taxes. Once you are offered a job, calculate if the salary is enough for your expenses and savings. Your knowledge of taxes and the taxation system in general will also enable you to prepare or review your own tax returns, financial statements and others. Read about personal finance and know more about insurance and investments. Investments make sure that your money won’t lose its value to inflation. You see, gone are the days when saving alone can get you through retirement. If you need more advice that suits your circumstances specifically, talk to a reliable financial planner.
Live healthy
Illnesses and accidents can easily devour your savings. While we cannot guarantee what our bodies will experience in the future, we can take a step towards healthy living. It’s also a smart move to avail of a good insurance policy and keep a separate fund for emergencies.