MANAGING YOUR FINANCES DURING THE EARLY ADULT STAGE
Since handling your funds and preparing for your future financially is not something that is specifically taught in school or can be learned overnight, knowledge on the art of financial management would be beneficial especially for individuals about to start the phase of the so-called adult life. While getting your hands on your first ever salary is one of the most satisfying experience, it would not do you any good if you do not have the slightest idea of how to take charge of it, so here are a few tips for youngsters out there when it comes to taking care of your money.
Practice self control
Yes, nothing beats the excitement of getting your hard-earned pay every month, but resist the urge to wipe out every bit of penny you have received and practice saving up a fixed amount every time you have your salary. Aside from being able to save you at one point in your life, it also adds to that secure feeling, knowing that you are not completely broke no matter what incident may occur. Also, while the idea of merely swiping out a card to be able to own every item you fancy, it may also be a trap, especially if you do not know when to stop piling up all your purchases in these cards. If you really want to avail a credit card, make sure that you pay your balance in full every time your bill arrives, and spare yourself from the possibility of a bigger problem.
Raise your awareness on financial matters
You might want to start browsing a few books on finance, just so you would not be relying on financial planners all the time. Take note that although having one is convenient, wouldn’t you be more at peace if you’re the one taking control of your money, especially since these people will not always be for your best interest? Do not get deceived and know where your money goes--whether it's your income taxes or your own expenses. Keeping track of your funds is going to help you with your budgeting skills as well.
Invest on yourself
Allocate an ample amount of your money for your retirement, health, and for emergency purposes. Saving up for your retirement earlier will require you less principal in order to obtain the money you need once you decide to stop working. There are several retirement plans to choose from as well, such as company-sponsored ones. You might also want to apply for health insurance, but the best measure to avoid excessive spending in the future is to start keeping yourself healthy.
Get familiar with taxes
More than simply extending your hand to get your compensation, it would be best if you have knowledge on income taxes, not just so you won’t be surprised with the amount that has been trimmed down from your salary, but also to help you with budgeting as knowing your taxes will give you a more accurate estimation of how much you are going to get from your job. Luckily for you, today’s modern technology offers applications that can do these tax collections for you, such as Paycheck City.
Protect your wealth
Simply setting aside a bit of your cash on a regular basis is not enough, as it will erode your money’s value. Open up a savings account and apply for a disability insurance as well to safeguard your assets. In case you need help in managing your funds, get assistance only from a fee-only financial planner, instead of from a commission based one.
You don’t need a degree to manage your money wisely. Whether you are a newbie in the world of taxes and income, simply following these simple steps coupled with a few skims on the basics of finance will leave you more than capable of supervising your wealth.