AseanOutlook.com – As unfortunate as it is, personal finance or finance in general is not a subject that schools teach you about.
As such, the lack of basic knowledge about such things leaves young adults clueless about how they can manage their money.
Thankfully, there are articles and guides online about financial advice for young adults that they can follow.
And this one is our take on financial advice for young adults. We hope can help you navigate this tricky maze called as life.
If you’re lucky, your parents would’ve probably already taught you this one financial advice for young adults. But if not, keep in mind that learning how to control yourself as well as the art of delaying gratification as soon as possible will make things easier for you to keep your finances in order.
The way it is right now, you can effortlessly buy an item on credit as soon as you want it, but the truth is, it’s way better for you to save up money until you can actually buy those things. Like, seriously.
Ask yourself this question: Do you really want to pay interest for mundane things such as watches or a pair of jeans? No, right?
If you make relying on credit a part of your habit, even if you have the money to pay them, you might still have to pay for those items in 10 years, because it’s already a habit that you develop.
But, if you still want to keep your credit cards for the convenience factor or the rewards that they offer, make sure to always pay your balance in full when the bill finally arrives, oh and also don’t carry cards than you can keep track of. As long as you follow these two things, you will often time have a healthy credit history.
Understand How Taxes Works
One of the best financial advice for young adults that we can give right now is to understand taxes and everything that comes with it.
It’s very important to understand how income taxes work before you even get your first paycheck. When a company offers you a starting salary, you need to know how to calculate whether the salary will give you enough money after everything (tax included) to meet your financial goals and obligations.
Thankfully for all young adults out there. There are plenty of online calculator that do all the dirty works for you. That is determining your own payroll taxes. One of those calculators is PaycheckCity.com.
These calculators will show you your gross pay. How much of it go to tax, as well as how much you will be left with.
Guard Your Health
Health is one of the most important aspects in life, and this is still a legit financial advice for young adults. A single visit for minor injury such as broken bones can cost you thousands of dollars.
So, if you don’t have an insurance for your health, don’t wait for another day to apply for your health insurance; accidents such as car crashes or trip down the stairs aren’t as uncommon as you might think, after all.
Another financial advice for young adults that’s worth mentioning is that you can also save money by getting quotes from the myriads of insurance providers available out there to find the lowest rate.
And of course, by taking steps starting now to keep yourself healthy. An exercise here and there during the weekend will not only benefit you at that moment, it will benefit you in the long term, too.
Protect your money
The last but not least in our financial advice for young adult is to of course protect their money. Your hard-earned money will just vanish if you don’t take the necessary steps to protect it. If you rent, get renters insurance. There’s also disability income insurance that helps protect your greatest assets.
And that’s all that we can say for financial advice for young adults. It’s a hard-knock life out there, so to make sure that you don’t get overwhelmed by the burdens that were put on your shoulder, you can follow these advices and help make your adult life a little bit smoother.
Thank you for reading this article about financial advice for young adults, we hope you find what was written helpful, and we’ll see you again next time in another article. See you!