The benefits of being a young adult are endless, but the one disadvantage is the lack of experience you have. This is especially true when it comes to money. So consider the below pieces of financial advice young adults should take to heart.
First, begin saving now. Most young adults have a lot of bills to pay off. There’s student debt, for one. But as soon as they move out on their own, there’s also rent, renters insurance, a car note, auto insurance, groceries, utilities, etc. Nonetheless, it’s important that your budget involve an allocation for your own personal savings. It’s never too late to have an emergency fund on hand.
Along the same lines, make sure that some of the money you put away also goes toward retirement. When you put money into retirement plans, you benefit from compound interest. However, the sooner you begin benefiting from compound interest, the more you’ll get from it. So if you want a certain amount by the time you’re 65, it will take you less money to get it if you begin putting money aside as soon as possible.
When you accept your first “real” job or move to another state for one, be sure you understand how taxes work. A paycheck may look really great at first, until you learn what Uncle Sam is entitled to. So before you take a job, go online and use a tax calculator to find out what it really pays. That way you and your budget won’t have any rude surprises.
Learn to live with less when you’re young too. This is a skill that will pay dividends as you get older as well. Like a lot of younger people, it can be tempting to buy all kinds of things you don’t need because you have the money for them. However, a lot of these possessions end up becoming obligations. Others are just things you would have been better leaving on the shelf and putting that money away for a rainy day.
Embrace these suggestions, make them a part of your life and you’ll see some serious benefits where your money is concerned.