In our opinion one of the worst mistakes that American high schools make is that they don’t teach children anything about personal finance, finance in general, how to handle money or, frankly, anything about being responsible with money. Unless someone actually studies finance in college it’s pretty much the same thing there as well. With that in mind we put together a blog article to help our young adult readers to jump start their financial education. The tips below will help you to start lifelong financial habits that will make sure that, once retirement arrives (and believe us, it comes faster than you think) working will be an option rather than a necessity. Enjoy.
One of the biggest factors of any good financial plan is to learn self-control. The fact is, credit card debt can accumulate very quickly and the extra costs and fees as well as interest that you will incur with high credit card debt caneat up a lot of money that would serve you better in some type of investment, savings plan or retirement fund.
Educating yourself about finance is a good way to not only save some money but also to avoid either unscrupulous financial planners or friends and family that are well-meaning but have no idea about finances themselves. The Internet gives you access to excellent financial advice and more information than you can shake a stick at. (This blog is a great example.) Frankly, almost everyone who is a financial success usually owes their success to the things that they’ve learned and put into play themselves.
If you have taken our advice on the last Tip you’ll realize how important it is to create a budget. The reason is simple; a budget will show you exactly where your money is going and also show you where you can save, cut back on expenses and keep more of your hard earned money where it belongs; in your bank account.
Practically every financial expert will give you this same bit of advice; pay yourself first. What this means is, before you pay the regular bills every month, make sure to pay yourself or put money into your savings or retirement accounts. That way, even if you might not have enough to pay the other bills off completely every month you will be saving money and accruing interest. This is a vital task that, if master, can help you immensely in the finance department.
Even though it might seem like years away we recommend that you start saving for retirement now. This will allow you to take advantage of money’s best friend; compound interest. The simple fact is that the earlier you start putting money away for retirement the more compound interest will help you to grow it into an excellent retirement nest egg.
As health care costs skyrocket in the United States one of the best things that you can do to guard your finances is to take care of your health. Eating healthyfood, getting regular exercise and generally taking care of your body now will, in most cases, ensure that by the time you reach retirement you will still be in great shape and many of the costly drugs and other health care costs that most seniors face will be greatly reduced.
While we’re on the subject of guarding your health it’s a good time to talk about guarding your wealth as well. In most cases this simply means insuring yourself for things like disability, health problems and so forth so that, if an emergency does occur, you won’t lose all of the money you’ve worked so hard for.
The fact of the matter is that you don’t need a fancy degree or a financial background to be an expert at managing your money and finances. Educate yourself, use good spending habits and start saving as soon as possible and you’ll be doing more than most people do and making sure that your future financial self will be in great shape. Of course coming back on a regular basis and taking advantage of all the excellent financial information we give here for free is probably the best idea that know. See you back here soon!