10 Money Advice For Young Adults and Anyone, Really!

Saving money might seem like an impossible task especially when you’re just starting to earn your own money, either as a young adult, or an entrepreneur starting to see profits. It can be so tempting to just go and spend your money. Unfortunately, spending thoughtlessly won’t bring you any good.

Start saving early is maybe the most common money advice you’ll hear and I have to agree. Walk the path toward wealth, success, and fulfillment and start early.

Here are some financial advice to get you started on your journey to financial success. I have divided the tips into five main categories I consider to be the most important ones.

1. Start With Your Goals 2. Learn and Take Control 3. Be Smart About Your Credit 4. Make Smart Investments 5. Educate Yourself

Start With Your Goals

1. Set realistic goals.

You need SMART goals – specific, measurable, attainable, relevant and time-bound. With SMART goals, it can be easier to set your objectives and monitor your progress as you achieve them.

 

2. Work on achieving your goals.

Compare your current financial situation to your future financial goals then create a financial plan that allows you to achieve these goals. Just like what I always say, “It’s not what you do, it’s how you do it.” Keep reading for more tips on how you can achieve your goals.

“Thinking in a wealthy way will bring riches to you, but thought alone does not bring wealth: action is an important part of building wealth.” – Garth Vickers, The Wealthy State of Mind

Learn and Take Control

Manage your personal finances, it’s your own money after all. If you don’t learn how to take control of your personal finance, other people might take advantage of you. You can always ask for assistance in managing your money, but make sure you still have the last say.

 

3. Set a budget.

Creating a budget is one of the best ways to save money. It doesn’t mean you have to give up luxury and fun for the rest of your life. You don’t have to be too strict on yourself. You’re only going to get smarter about allocating your funds to savings, bills, necessities and then your personal desires.

Here are some budgeting methods you might want to try.

The 50/30/20 method. Spend 50% of your income on necessities, 30% on savings, debts, and bills and 20% on discretionary expenses.

The envelope method. Figure out major expenses you need cash for (groceries, rent, bills, allowance, entertainment, etc.) and designate envelopes for each category. Withdraw the money you'll need for the month and divide your cash for the envelopes. This method promotes using cash only, no credit cards.

The zero-based budget. Give your every dollar a job. The amount that goes into your account, is the exact amount that goes out too. For example, if your income is $4,200, then you spend $4,200 whether it’s for expenses or savings.

Every method does not work for everyone so it is important to find and use the most effective one for you. You can also come up with a personal method that works best for you.

 

4. Track your spending.

If you don’t keep an eye on your spending, you might find yourself confused about where all your money went. Know where and when your money goes. Doing so can help you anticipate future expenses and set up a more accurate budget and identify any wasteful habits you don’t realize you have.

One effective way to track your spending is by reviewing your bank account transactions weekly and monthly. Keeping receipts of your purchases and bills can also help. There are free smartphone apps that can also help track your personal finance like Mint and Wally.

Be Smart About Your Credit

Your credit profile and score determines your creditworthiness. Lenders like banks and credit card agencies discern your ability to pay debts through your credit profile. With a good credit score, you can apply more easily for loans.

 

5. Maintain a good credit profile.

You can start by sustaining a good payment history, a factor that can directly affect your credit score. Pay your debts, taxes, and bills on time. Pay them before their due dates. Don’t max out your credit limit. If you have a credit limit of $1,500, limit yourself to spending less than $750. You must also maintain a clean public record so avoid violating laws.

Make Smart Investments

6. Start an emergency fund.

Things can go wrong outside your plans. That’s how life is. An emergency fund can save you during these times. Set up a separate account and only use your savings when an unexpected and emergency situation arises like accidents or illness.

 

7. Save for your retirement a.k.a. your future.

You're never too young to start saving for your future. In fact, it's better to start at this stage of your life. You can add a retirement pot as one of your long-term goals. The sooner you start saving, the more options and control you have with your retirement funds. You can opt for a retirement plan or you can also try time deposits.

Educate Yourself

Your state of mind can also affect your financial success. You can achieve individual wealth with a mature mindset and a level of personal development. Start by acquiring all the right knowledge, tips and motivation to help your personal finances.

 

8. Read.

They say experience is the best teacher, but I understand that not everyone has the opportunity to experience many things yet. In this case, let the experiences of others teach you. Learn from people who have been there and done that.

Many successful people write about their experience, the road to success that they’ve taken. Read those stories and learn from them – books, blogs, journals, etc. You don’t have to take exactly the same road but you can take tips.

The right knowledge, inspiration, and motivation can take you places. You can find motivation and inspiration almost everywhere. Check out this 6 Important Financial Lessons From the Bible.

 

9. Strive to reach your full potential.

Nurture your marketable skills. You can build wealth not just with a savings account. During the early stage of your life, you’ll depend greatly on your skills and knowledge. If you have a skill you’re most proud of and you think can help you achieve your goals, polish it.

You can do this through studying and/or practicing. Get a degree or a certificate. There are many thing you can learn from education. You can also practice and develop your skills by using them in your chosen field. Apply for a job, be a freelancer, work sideline, setup your own company, it’s your choice. There’s nothing better than first-hand experience.

Make your skills your weapon as you grow and develop to a financially stable and/or successful individual.

 

10. Talk to a financial advisor.

As I’ve mentioned earlier, there’s nothing wrong with asking for assistance for your personal finance. We are experts who can steer you in the right direction to achieve your goals. It’s best to reach out as early as you can, giving you more time to determine and discuss your goals and set up a plan on how to achieve them.

 

There is enough for us all to be wealthy. You just have to be wise on how you can utilize and grow your resources. It starts with your mindset. So if you want to be wealthy, start by recognizing that you already are. Your plan and focus will then be your driving force to your destination, your goal – success, more wealth and fulfillment.

Visit my blog for more inspiration and motivational tips to help you grow and develop financially.