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Introducing On Your Own: A Personal Finance Guide For Young Adults

September 3, 2018

It is rather unfortunate that personal finance is not taught in schools as a subject in itself while this topic goes on to become the most important thing in a person’s lifetime. When you are out in the real world, a proper understanding of personal finance and how to create savings for yourself are the two most important lessons that you should be equipped with.

Here is a personal finance guide for the young adult in you.

  • Self-control

This is the first thing to learn while understanding savings. Delay your expenditure for as long as possible if it does not pertain to your basic needs and your finances will never go out of order. Keep your credit card locked up for emergencies and try paying your immediate expenses with liquid cash. If there is something that you really want to buy from, then saving up for it will teach you the concept of self-control.

  • Plan your finances

Your financial future is in your hands. Do not give it away to someone else to manage when you can preserve it by reading more about personal finance. Understand how money works, the investments that you could make in order to ensure that your future is secure and how much you should ideally spend in order to always have enough money to feel stress-free.

  • Emergency fund

Needless to say, life is full of unexpected happenings. You can never be absolutely sure of your financial status since a single round of hospitalization could throw you off-guard. Medical expenses, sudden loss of life etc can drain you emotionally, physically, mentally as well as financially. While the first three aspects cannot be healed instantly, you can be prepared for the fourth aspect by creating an emergency fund that will come in handy in such situations.