Most young people tend to be easy going especially when it comes to money. They buy things left and right as long as they have cash with them. And worst case scenario is that they even spend money that they do not actually have just to satisfy their wants sometimes more than their needs. This is commonly in the form of credit card debts and loans. This is only fun in the beginning but when it’s time to pay the bills and the debts piled up, that’s the time you will realize that you should’ve been more responsible and careful.
It is never too late to change your habits and to correct your carelessness in your finances. In this article, we will give you some useful tips to help you on your way to financial freedom and finally say goodbye to your debts.
Tip 1: Have a separate savings account – the idea of having separate savings account is to keep you away from it – prevent you from withdrawing money every now and then. You should save specific percentage of your salary as form of emergency funds.
Tip 2: Review your expenses – list down all your monthly expenses and review items that you can actually live without. This will help you save more than you can imagine.
Tip 3: Have a budget plan – avoid spending money thoughtlessly as if you’re a blindfolded horse. Create a weekly and monthly budget so you know how much you’re allowed to spend and then be sure to follow it strictly.
Tip 4: Pay your bills on time – did you know that late payments incur additional fees most of the times? Yes, thus, you should make it a point to pay your bills on time.
Tip 5: Create list when doing shopping – to help you prevent from overspending, it is recommendable to create a list before you leave the house. This way, you make sure to buy only what you need.
Tip 6: Cook your meals instead of dining out – another way to help you save more is by cooking your own meals instead of always dining out. Also, this habit is a lot healthier.
Tip 7: Use cash instead of credit card – stay away from temptations that can only drown you in more debts. You should try to pay with cash instead of credit card.
Tip 8: Invest some of your money – lastly, it is important that your money is continuously moving and you can do this in the form of investment. It is best to contact one of the best and most trusted brokerage firm to help you especially when you’re just starting. Then, be sure to allot certain percentage of your income to go to investments.
Those tips will help you handle your finances well. It is best to come up with a plan that will serve as your guide in spending your money. Without a guide, there is a high possibility that all your money will be gone as soon as you receive it so make sure that you know exactly how to divide your money – certain percentage to go to your monthly expenses that include rent, gas, mortgage, grocery, allowance, and other bills, then another percentage to go to your savings account for emergency purposes and it is highly recommendable to allot some money for investment too for long term goals.