If you have received your first paycheck and despite having lots of plans, you still can’t decide what to do with your hard-earned money.
well, I’m here to tell you that 5 things that you should do in order to avoid financial uncertainties and achieve your financial goals…
Personal finance is only 20% head knowledge. It is 80% behavior.Dave Ramsey
1. Pay your dues
The first thing that you should do is pay you dues, bills, and the money you take it to form your friend saying you’ll return it in a week but that week never came. So it may not seem important to you as you’re friends with them but this is important for making a good and trustworthy relationship. It’s so not about money, It’s about that trust your friend has on you, it’s about being responsible and building your character and your credibility.
“To be great in something, you can’t avoid a fundamental law: you have to pay your duesJoe Pane
2. Offer something to god and your parents
The next thing you could do is to offer something to god that should not be so expensive and filled with good intentions.
Gift something to your parents, remember not to buy something that is so expensive that you have to buy it on EMI (as you don’t want to be in debt in the first month of your career). Gift them something that shows your love, care, and affection towards them. They value you love more than expensive materialistic things. Show them that you care about them and you are always here to support them financially and emotionally.
“Appreciate your parents, you never know what sacrifices they went through for you.”
Budgeting..budgeting, budgeting. Budgeting is the key. It provides control over your money, you’ll less likely spend money unnecessarily, you’ll know what you can afford, it provides you data about your spending and savings and there are many other benefits of budgeting. And for you, as a young adult, it’s a very good habit to develop if you want to be financially stable.
“A budget is telling your money where to go instead of wondering where it went”Dave Ramsey
4. Open an emergency fund saving account
Saving should be your first priority. Open a savings account and put some money in it and only withdraw it in the case of an emergency. No one knows what gonna happen next, so it’s better to be prepared. Your monthly expenses ×6 should always be in your savings account and only use it in case of an emergency.
“Save money and money will save you. “
Don’t let your money be in a savings account or in a fixed account, do investment. I’d say don’t keep more than 6 months of expenses in your savings account. If you don’t invest your money is losing its value. Nowadays investment is not an option it is a necessity. In this kind of situation where inflation is increasing rapidly, you have to find a way to keep up the value of your money.
Start investing as early as you can to get benefits of compound interest. There is a big difference between the people who invest in their 20s than the people who start investing in their 30s and this difference could be of millions.
So just start investing and if you don’t have that much knowledge about investing, just buy a mutual fund or index fund, do a SIP. And start educating yourself about finances, believe me, it’s worth your time and effort.
“How many millionaires do you know who became wealthy by investing in a savings account?” I rest my case.Robert c Allen