Some Money Management Tips for Young Adults — The Kind Tips - Tips for Life, Study, Work and Entertainment

Some Money Management Tips for Young Adults

Some Money Management Tips for Young Adults

Do you think you don’t have to learn about money management right now because you are too young? While, you are never too young to be educated about that. Some tycoons such as Bill Gates and Warren Buffett learned about money management rudiment even before they can walk. You don’t need to learn too much in your early age, but you should at least know the basics before venture the world. Having some money management tips in mind, you’ll be able to avoid some rookie mistakes that cost plenty of money.

1. Set a budget.

You may hear about government projects that still operate when they are lack of budget, but you can’t do the same thing. When you get your job, one thing you should do is to make a spreadsheet listing all your income and expenses. Expenses include costs on food, housing, loans, entertainment, etc. When you do this, list the items in an order of priority. If you are not sure about the expenses in each category, track and record at least one month’s expenses to get an estimate. Look at the expenses and start from the bottom of the list to find out items that can be limited or eliminated, since they come with the least priority. Subtract your expenses from income and determine how much can be saved. If possible, save that amount of money before you pay the bills, or, you may be tempted to spend it on something unnecessary.

2. Use credit cards as sparingly as you can.

Young adults should use credit cards only when you are in emergencies. You might be charged for 20 percent interest or even more on credit card balances, which can easily eat up your income. When you just land with your first job, please don’t be enticed by the credit companies who offer you a high credit limit than your actual need. The extra credit limit might raise the interest rate when you are paying a loan, an also you may spend extra money on impulse shopping.

3. Make a shopping list.

Think about needs and wants, and avoid impulse purchases. Before you go to grocery stores, work out a shopping list. Once you have the list, just stick to it and don’t deviate.

 *Image source: http://www.examiner.com/article/7-money-management-tips-for-young-adults

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