Money Management Tips – Congratulations! You are finally a graduate. It is quite possible you have had your fair share of part-time jobs by now, or you are probably already employed.
But you are still in your 20s, and you barely know anything about money! Do you know how to manage money? Do you know how necessary is money management in this crucial age? Have you listen about money management tips.
Yes! That happens. You decide to graduate to earn money, but once you graduate, you have no idea about investments, savings or even wealth. Worse! You are in a heap of debt with that education loan piling up on you. The worst is when you blow those first few paychecks at the mall or use your credit cards and take an auto loan you clearly can’t afford. So, how do you build your wealth? Do
Well, for starters, you can try these strategies. These are the money lessons you need to learn by heart and follow if you are truly interested in saving, paying off the loans and create wealth!
Get Ready To Be A Winner
Austin Netzley, a Business Insider contributor, explains that there are some simple strategies that you can follow to automate your bills and investment, which can set you for the win.
Remember, you are going to find a way to spend all your income, so the whole idea is to prevent wastage and create wealth. For this, you need to automate payment for your bills to avoid bad credit.
To boost your credit account, you need to automate your investments, whether in stocks, mutual funds or even a retirement fund. It will all work in your favor. Doing these things will help you be good with the money.
Keep Your Credit Score Protected
Seriously! This cannot be stressed enough. Most people in their 20s begin to earn and begin to spend heavily. The result- they develop series debt troubles by the time they decide to take a loan.
So, protect your credit score. Apart from paying the bills on time, make sure that you don’t overspend or end up defaulting on your credit cards. This is particularly essential for improving one’s credit history and ensuring that the dangers of a poor credit score are reduced.
Have A Budget (And Stick To It)
This is one of the most important money management tips. Of course, when you start earning, you are bound to become a ‘shopper!’ Certainly, you are going to spend more. But it is important that still keep a frugal mindset. Why? Because that will help you stick to a budget.
Avoid the temptation of a good lifestyle simply because you have a new job. Cut some expenses, don’t full yourself with too many pleasures and stick to a budget. You can also enjoy on a budget and have some fun set aside for funds.
Save more! A lot more!
You may think that you can’t save a lot. But think again! Surprise yourself and save a lot more than you thought you would. Remember, you are probably single right now and you will have many responsibilities waiting for you in the future. Saving is on of amazing money management tips from many generations.
So, it is pivotal that you save to handle those responsibilities. At least 10-15 percent of savings is a must!
Do you want to live your 30s from paycheck to paycheck? Do you want to work too hard in your 40s? Or worse, work for hours and hours in a tiring job when you are reaching your 60s?
Well, if not then you need to shoot for the freedom. Instead of thinking about being rich, think about being free. That’s what will help you garner wealth. Your ultimate goal is freedom from financial hassles. So, design a lifestyle that lets you enjoy your present while keeping your future free.
Set Your Priorities One of Top Money Management Tips
Most often, people erroneously assume that they need to sacrifice what they like to be wealthy. Perhaps, that’s the only reason many people don’t save- because they don’t want to give away the present luxuries of their life for an uncertain future.
But that’s wrong! You don’t have to sacrifice the things that you love the most. All you have to do is focus on what matters and set your priorities straight. So, if your home budget or monthly expenses require 33 percent of your salary, use it! But don’t spend away 20 percent of your income on clubbing and partying with the friends.
Similarly, if you can car-pool then don’t waste money on driving your car too often! If you enjoy eating out, don’t give away that luxury, but ensure that you don’t eat out too often, perhaps not more than twice a week. That would instantly save you much money!
No, we aren’t asking you to spend hours on social networking sites. However, you need to increase your net worth by networking. Why? Because the possibilities are that you will lose a job at least once during your working period. And you don’t want to end up being unemployed for too long.
Remember that most new jobs come from acquaintances and people who know you. So, if you are interested in keeping a job and earning money, you should network with people. It is recommended that you even go to conferences and training seminars once a year to network and meet new people
Be in a great financial position! Live a better life!
Also Read: Tips For Work Less And Get More.