We don’t learn a lot of things about the real world when growing up. One important topic that every young individual should understand is finances. Education is important but schools do not teach the kids about adult responsibilities that they should know while growing up so they do not make mistakes and end up financially unstable. Here are a few money lessons I wish I was taught when growing up.
Having Financial Goals
Setting goals for your finances will help you achieve security. It starts with setting a goal that it is attainable and realistic. It needs to be a goal that will be in line with your vision of your future. Be specific and timely as well. Goals can range from short-term to long-term. It is also good to have both that you know you can reach!
Budgeting will help you stay on track from day to day. If you create a budget, say it be weekly or month, this will help you easily see the money that you have coming in and what is going out. You begin with an income amount and subtract your expenses. Include your savings in expenses as well. This will allow you to see what exactly you will have for each expense.
Pay off any of the debt you have accrued and try not to get into anymore debt. Having debt only decreases your chance at financial freedom. Make paying off your debt a financial priority!
Save for Retirement
I know, thinking about retirement at such a young age may sound ridiculous but it’s not. Starting to save for retirement in your 20’s is crucial to developing financial success. This is a form of investing for your figure. Plus, if you start young you have so much time to invest and it builds up!
Investing is where the big money rolls through. It’s hard to start if you don’t know anything but you can always learn and it begins by reading a book and hiring a financial planner. Before you invest though, I suggest you pay off your debt. Investing when you don’t have the means to is tricky and can get very sticky.