The most coveted type of independence is
Save before you spend
Young people who have joined the workforce and are earning a good salary tend to feel that they are financially secure for life. As a result, most of them avoid or even ignore investing for long-term or even short-term financial gain. Although savings help you meet day-to-day expenses, they are best used when invested in long-term investment opportunities. An important aspect of money management is setting an investment goal based on your priorities in life. Do you need money to finance higher education? Is marriage on the cards? Are you a young parent? Depending on your needs, you can choose from different types of investments such as mutual funds, term deposits, real estate, government or corporate bonds, stocks, etc. These can offer investors good returns at the end of an investment term, while working as a corpus to pay for emergency needs.
Compilation of your money
The power of composition
Choose safe loan options
Sudden unforeseen expenses or emergencies can sometimes mean that we cannot meet our financial needs all the time. While it can be tempting to take out cash-strapped payday loans between pay cycles, these loans can cost you dearly. Payday lenders often charge high interest rates and fees and have much higher penalties/late fees. Other options such as credit cards and Buy Now Pay Later programs can be convenient, but also charge interest and late fees which can be costly. Opt instead for solutions like
Ask the Experts
As a young adult, don’t make the mistake of thinking you’re too young to manage your finances or too rich to keep track of them. Talk to financial advisors and make the right decision based on your needs. It’s never too late to start learning and improving your financial knowledge to better understand banking, budgeting, debt and credit management, and investing.
Whatever stage of life you are currently in, having a prudent plan for managing personal finances is a must and is important as it will help you live a good life now and in the future. !