8 Money Tips for Young Adults

Personal finance still isn’t required in high school or college. This results in many young adults not having a good foundational knowledge of how to manage their personal finances. Fortunately, this subject isn’t complicated. A willingness to learn and do a little reading is all that’s required.

With a small investment of time and energy, anyone can become fluent and knowledgeable on the topic of money. The payback on this small amount of time and energy is priceless. Money challenges are a major source of stress for most adults. You can avoid these challenges.

Add these 8 simple tips to your financial knowledge

1. Be responsible for your finances. While there are many great money experts that can help you with your finances, the personal finance field is also full of unscrupulous people.

* Take the time to read topics that pertain to your finances. Pay your own bills. Stay on top of your money. Avoid leaving the responsibility to someone else.

2. Be aware of how you’re spending your money. Setting up a simple budget is the first step. Then track how you’re spending every cent, at least for the first couple of months. Everyone is surprised by how their money is being spent when they take the time to really examine the issue.

3. Learn the differences between ‘needs’ and ‘wants.’ It’s not always easy to deprive ourselves of the things we desire. But if you can to say ‘no’ when it’s appropriate, you’ll eventually be able to purchase essentially anything you could ever want.

* Many financial challenges are created by poor impulse control. This includes purchasing things you can’t afford and things you don’t really need.

4. Keep track of your credit score. Credit scores become more important every year. It’s common for credit reports to have errors, so be sure to review your credit report every year. Take the time to learn about credit and how to build a strong credit profile.

5. Don’t wait to start funding your retirement. If you get started early, you can save a lot of money quite easily. A little bit grows into a lot over 40+ years. Compound interest works like magic.

* If your company offers a retirement plan, be sure to take full advantage. The tax savings and convenience are spectacular. Your company might even match your contributions.

6. Invest in your career. Spending money to further your earning power is money well spent. This can include job-related training, books, and formal education.

* Hiring someone to mow your lawn isn’t out of the question if it permits you to spend time on more important, career-related activities.

7. Protect your health. Health insurance is very expensive for most people, but hospital bills are even more. Do everything you can to be as healthy as possible. And find a way to afford health insurance.

8. Have reasonable expectations. It’s unlikely you’re going to be living like your parents when you first head out on your own. It will take time to accomplish what your parents have spent years building. Patience is critical.

Many older adults wish they could go back in time and handle their finances differently. You’re in an ideal position to get started down the road to a healthy financial future. Take advantage of your unique situation. You can have a life of financial security. It’s much easier to avoid mistakes than it is to fix them.

Four Personal Finance Success Tips

Does financial freedom seem like an unreachable goal for you? For some, the only goal in sight is getting that next paycheck so you can pay the bills before services get disconnected. Even if your current situation seems dire, there are things you can do to achieve personal finance success. Options that can improve your financial situation are all around you.

When you want to move your financial life forward, the first step is deciding on a worthwhile goal. What do you want to see happen? When? As soon as you’ve made that determination, you can begin marching toward your success in a step-by-step fashion. A worthwhile goal ensures you know where you’re going before you set out on your journey.

Long-Term and Short-Term Goals Are Both Critical

You might have a short-term goal to pay off a credit card and a long-term goal to pay off your mortgage. Those are both reachable, but one will take longer than the other. Makes sense, right?

Well, that’s why it’s so important to set a realistic timeframe for your goals! Stay encouraged by tracking your progress along your planned timeline. When you see a goal getting closer to achievement, you’ll become more excited and motivated to keep moving forward.

If you only set long-term goals, the payoff is too far away to provide any real motivation. These goals take a while to achieve and the lack of immediate progress may make you want to quit without shorter-term goals to look forward to.

The goal is to set long-term goals and couple them with short-term goals that excite you. Or, break your long-term objectives into short-term milestones that provide encouraging feedback on your progress. That way, you remain interested in pursuing your financial success.

You Can Get There From Here!

Too many people get discouraged and stop working for their goals. Don’t let this happen to you! Avoid allowing yourself to end up financially stuck and struggling because you let setbacks derail your train to financial success and prosperity.

Instead of giving up on your success and stopping yourself from living the good life you deserve, use these strategies to move forward:

1. Reap your rewards along the way. Set realistic goals and reward yourself when you meet them. Divide your large goals into small steps and celebrate completing each step.

2. Be flexible. Be willing to move your completion dates if you see they’re too soon. If you experience a setback, learn from it, adjust your goal’s completion date, and continue moving forward.

3. Focus. Stay focused on what matters to you instead of getting sidetracked. Remember the reasons why your success is important to you when the going gets rough.

4. Make the work toward your dreams more enjoyable. Moving forward doesn’t have to be all tedious work. Include goals in your life for things you enjoy, too.

  • Turn your hobby or other enjoyable activities into a profitable venture.
  • Ask yourself how you can make tasks you dread more fun.
  • Include a friend.
  • Make it a game with yourself.
  • Whatever you do, keep a spirit of playfulness in your work and success is sure to follow!

Your hopes and dreams are what fuel your happiness. You deserve a life that’s filled with rich experiences, meaningful relationships and inner peace. With a positive mindset and a determination to succeed, you can achieve all of this and more. Financial independence and the dream life you seek are within your reach.

When you reach your goals – even the small ones – you set yourself apart from most people, who dream big dreams but stay on the sidelines of life.

Get in the game!

Brainstorm the short-term and long-term financial objectives that matter to you. Pick the most important ones, sketch out a plan, and take the first steps toward your personal finance success today.