Being an adult sucks! It’s filled with tasks and responsibilities. There’s the task to build a successful career, make future plans, get married, handle real life responsibilities and yes! Pay bills!
Managing your money can seem overwhelming especially if finance related topics aren’t really “your thing” but if you get the right knowledge and training it’ll be as simple as abc.
Saving money is hard when you are young, it is equally a learning process, most of which will come from experience. Here are few things that can be put in place in order to prepare for a successful financial future.
1. Budget Budget Budget! A budget is guide of your monthly finances. It will keep your spending under control especially if you are someone who just loves to spend. Many people think being on a budget means less fun, less shopping, more restrictions… that soo not true. Your budget should be as realistic as possible, it is just there to keep you on track and monitor your finances.
“A budget is telling your money what to do instead of wondering where it went”
2. Be futuristic: I support the whole “living in the moment” mentality. But in ten years, I want “nice houses , flashy cars and vacations every year” so somewhere in between my “living in the moment” and my “future fancy life” there’s the reality where my long term goals need to be backed up with financial strategies. It is never too early to start planning, saving and investing. Whatever your future goals are, be proactive and start planning now.
3. Do your research: Have a good knowledge of money management and investment. These are skills every individual should have. You could start with having basic knowledge in those areas. You can read books like “A-Z of personal finance” or attend workshops like “becoming financially fearless”. Don’t invest in what you don’t understand, like buying shares simply because you “think it’s a good idea” or starting a business without fully understanding the financial impact. It’s always best to do your research, you could ask questions that will give you a better understanding of your finances. And make your decisions based on your research.
4. Spending recklessly: being young with lots of money is exciting, ask wizkid! You are allowed to enjoy your money, however, Spend within your means. Avoid spending money on things you don’t need. When buying anything, always put value before price. Refuse to show off, we live in a society where its the norm to impress. Spending so much of our time on social media and obsessing over celebrities unconsciously affects how we spend. We find ourselves buying things simply because it looks good on someone else, or because everyone else has them or even trying to possess everything a celebrity has (do you know how hard they’ve worked to get there?). Your values and self worth should be directly correlated to your finances. You don’t need to pop that bottle if you cant afford to or have the latest iphone. Living on less than you make is the ideal way of spending.
5. Avoid debts: Avoid borrowing and even lending especially if you are not willing to let go of the money. If you are not financially comfortable letting that money go, just decline politely. just be on the safe side because friendships have crashed because of money borrowed. One of the worst financial mistakes you can make is not paying your debts, no matter how small it is.
6. Look for ways to increase your income: you cant be spending without earning. At least have some sort of investment. Have multiple sources of income if you can. Take actions daily to increase your income.
7. Money isn’t everything: don’t let the pursuit of money overcome other values. Financial success is essential however it is only one out of many aspects of a successful life. Create a balance between financial goals and every other life goal. Remember money is simply a means to an end.