When you get into the financial world and all it’s intricacies, the thing you might hear the most is that the earlier you start investing the better. Compounding works exponentially and that means when investing your money will grow more if given more time. So why do we need to tell this so repeatedly? That’s because the youth isn’t educated on money management and by the time we are aware about the importance of money management, it is too late.
So today let’s talk to you about how as a young adult you can manage your money better and make the most of it!
Table of Content
Make a budget!
This seems like very cliche advice, but that’s because it is the one that works the most! Once you start earning money, most of the time you lose track of the expenditures. Small expenses pile up and when you look at your account at the end of the month, all your salary is gone. If you have a budget you will have a track of your expenditures and will know what to cut back on and what to save. Only once you start saving your money, will you be able to make your money work for you!
Learn About Taxes
It’s surprising but many people aren’t aware of the basics of the taxation system. First find out if your salary falls under the tax bracket. You can get help online. Sqrrl Prime offers free tax filing by experts so you don’t need to worry about a thing!
Build an Emergency Fund
Emergency fund is nothing but a pool of money you keep apart for emergencies. Something that can tide you over for a few months if your regular source of income stops. Experts recommend that your emergency fund should have at least 6 months of your salary. So start working towards it today!
Get a health insurance
This is the point many people miss out on. We tend to think that in our youth we are in the prime of our health and getting health insurance might be a waste of money. Well it’s the exact opposite. If you feel the premiums are too high and are taking out a chunk of your salary imagine what paying a hospital bill might feel like without insurance. Tragedy can befall the best of us and it’s wise to be prepared. So look up a health insurance with benefits that align with your circumstances and get it.
Well, we couldn’t end a blog on financial tips without letting you know that the best thing you can do with your saved money is to invest it. To keep up with inflation, it is imperative that you make your money grow and that can be done by investing.Start by educating yourself. Once you have a basic grip you can start by investing small amounts and then building up to more.
We at Sqrrl are determined to help the youth unlock their true financial potential! Let’s build a financially literate nation one youth enlightened at a time.