8 Financial Tips for Young Adults

Young couple holding hands in the piggy bank

Personal finance is not a subject of learning in high-school, so we’ve gathered eight very useful tips to guide you through.1. Learn self control

Taking control over your finances is a very important deed. You need to understand what you really need and what you don’t need in order to make conscious purchases.

2. Take control of your financial future

It’s important to understand what you want to do in order to do it right and have the best results.

3. Know where your money goes

Once you’ve gone through a few personal finance books, you’ll realize how important it is to make sure your expenses aren’t exceeding your income. The best way to do this is by budgeting.

4. Start an emergency fund

One of personal finance’s oft-repeated mantras is “pay yourself first”. No matter how much you owe in student loans or credit card debt and no matter how low your salary may seem, it’s wise to find some amount – any amount – of money in your budget to save in an emergency fund every month.

5. Start Saving for Retirement Now

Just as you headed off to kindergarten with your parents’ hope to prepare you for success in a world that seemed eons away, you need to prepare for your retirement well in advance. Because of the way compound interest works, the sooner you start saving, the less principal you’ll have to invest to end up with the amount you need to retire, and the sooner you’ll be able to call working an “option” rather than a “necessity”.

6. Get a Grip on Taxes

It’s important to understand how income taxes work even before you get your first paycheck. When a company offers you a starting salary, you need to know how to calculate whether that salary will give you enough money after taxes to meet your financial goals and obligations.

7. Guard Your Health

If meeting monthly health insurance premiums seems impossible, what will you do if you have to go to the emergency room, where a single visit for a minor injury like a broken bone can cost thousands of dollars? If you’re uninsured, don’t wait another day to apply for health insurance; it’s easier than you think to wind up in a car accident or trip down the stairs.

8. Guard Your Wealth

If you want to make sure that all of your hard-earned money doesn’t vanish, you’ll need to take steps to protect it. If you rent, get renter’s insurance to protect the contents of your place from events like burglary or fire.