In almost all colleges and schools, there is no such thing as personal finance being required to be taken by every student or they do not have access to financial software such as the ones found in IRESS. Because of that, the younger generation tends to lack basic financial education which leaves them clueless on how to properly handle their finances or stay out of debt as much as possible. There are countries that are starting to require high school students to take personal finance courses.
This should be a step closer to a more financially educated generation. But for those who were not able to take up such courses, it is time to take a look at these 5 important things that you need to comprehend about money. These tips should help you in achieving the best financial life. The younger your age, the more time you have to save and invest.
If your parents have taught you self-control when you were young, you are lucky enough to apply it to your finances. The idea here is that the sooner you get yourself educated on how to delay gratification, the sooner you get to control your personal finances and keep them in order. It may be easy for you to purchase an item with a credit card and have the payment on an instalment basis but it is actually more appropriate if you save up for the amount so you can make a purchase. After all, who wants to pay interest which can just add to your monthly expenses.
Take Control Of Your Financial Future
You must learn to manage your finances or other people will take the opportunity to mismanage your finances for you. You cannot rely on other people’s advice all the time. There are now a lot of ways to gain some knowledge pertaining to your personal finance. By the time you become armed with the knowledge that you’ve worked hard for, you will not be fooled by anyone.
Know Where You Spend Your Money
After reading some finance books, you will realize the importance of making sure that your expenses never exceed your monthly income. Budgeting is the best way to do this. Additionally, you should also keep your recurring monthly expenses as low as possible so you can save the extra money for more important proceeds in the future.
Have An Emergency Fund
“Pay yourself first” – this is one of the most repeated mantras in personal finance. No matter how much you owe on your credit card or you have a low salary, you should bear in mind that you need to get a small amount out of your salary for your emergency fund. Budgeting apps are very common nowadays especially the ones from IRESS, you can use them to assist in achieving your finances. Remember that when you have money for savings, you keep yourself from the trouble that will cause you sleepless nights.
Save For Retirement As Early As Possible
You need to be prepared for your retirement in advance. The sooner you start saving money, the greater your investment you’ll have. You cannot work all your life. Later on, when you stop working, you will reap what you sow.