Recently, a nineteen-year-old man turned to the Internet for financial advice from men. He explained that he was “just getting started” and needed help managing and investing. Here are some of their helpful tips.
1. Invest in your pension early
One person suggested investing in your pension as soon as you start working. For example, a 401K or other type of retirement plan will be very beneficial going forward, and it’s always good to start saving early.
2. Always keep a financial airbag
One person recalled seeing statistics that nearly 50% of American households could be financially ruined by any unexpected expense over $500. Someone else responded by maintaining a $1,000 emergency fund for an airbag in case of financial hardship.
3. Find a good work-life balance while you’re young
Others agree that life is all about a good work-life balance, and finding it when you’re young is all the more important. Someone added that you only live once and have fun while you are young. You can miss out on a lot by focusing solely on financial readiness.
4. You don’t have to look after your appearance.
One person recommended not falling into the lifestyle trap of spending more when you start earning more to keep up appearances. They went on to say that instead of spending more on material things, “spend” more on your savings and investments; you will thank me later.
Another person confirmed that you should take half of your raise and automatically put it in an investment or savings account instead of spending it on material things.
5. Find a cheap hobby
Video games ranked fifth on this list. This inexpensive hobby that you can take up is gaming. One user explained how the “hours to dollars” ratio of time spent playing games can be useful as a pastime, especially in regards to cheap living for a young couch potato with no financial obligations.
6. Takeout food is much more expensive than eating at home.
Several people said that takeaway food from restaurants and delivery services is much more expensive than eating at home. Learning how to cook and eat at home is cheaper, easier, and “a good option.” A few quick “freezer or pantry options in case you don’t feel like cooking” are still healthier than takeaway food.
7. Start Your Credit History Carefully
Get yourself a cashback credit card. Most companies offer a minimum cashback bonus of 1% on many purchases. However, caution is required here: “don’t run the balance” on the card, one person warned. Instead, pay the balance monthly and you’ll be golden.
8. Create a budget and spreadsheet
The user group has stated that you should record your expenses and income using a spreadsheet to create a budget. Using your budget, you’ll learn how to create and manage your “monthly income goal” by tracking your income, bills, and average expenses. Keeping your monthly goal in mind will help you avoid unnecessary expenses.
9. Develop Good Financial Habits
Saving money should be one of the most important financial habits anyone has learned or been taught. Start by choosing the amount you can afford to save each month.
One person mentioned once you hit a number put that amount aside each month and when you get a raise also put most of your raise in savings; this “reduces the likelihood that you will notice a loss of money.”
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10. Keep track of your credit
In addition to creating and maintaining healthy financial habits, you must remember to control your credit score. The last person added that monitoring your account is just as important as your financial habits.
It is no one’s job but yours to maintain your credit, and someone else’s clerical error could get you in trouble. Please “consider creating a Credit Karma account” because they can be helpful.
This topic inspired this article. Do you have any helpful tips to add to this list? This article is inspired by the Internet and does not necessarily represent the views or opinions of Wealthy Nickel.
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