A Young Earners Guide to Optimise Financial Habits
For many young people, finance is a topic that they don’t want to discuss with their friends or family. Little do they know that this topic is a road map for the rest of their lives. Without a map, you can easily get lost on your way to the destination.
Similarly, without sound knowledge about finance, be it budgeting or expert advice on money matters, you can easily lose oversight, overspend or fail to pay bills on time. This information talks about a few tips and tricks for young adults to get their financial life back on track.
Finding A Job
Statistics show that the unemployment rate among young people has stayed constant, at 10 percent. This means finding a job can be challenging without enough education or experience. However, there are many ways you can look for a job and find the right one for your needs. If you can’t find a job through online sources or newspaper ads, it is okay to ask around. Ask your friends, people you know through clubs, extracurricular activities at schools or colleges, even neighbours. The more people you connect with, the more likely you will find the job you are looking for.
Savvy Saving Habit
Just as earning money is important to buy food, shelter and clothing, equally important is to save. From the time you are old enough to realize that money buys everything, you are ready to spend as well. There are so many things to purchase around. The new gadget in the market, the celebrity accessories that are the latest trend, new car that is fuel-efficient and so on. It is also easy to spend all of the money you have earned on things that pique your interest. However, saving is crucial to buy things that you need rather than those that you want. You need to save to plan for the unexpected.
Negotiating A Raise
Who doesn’t want to earn more money, to save or spend? Everybody does. As you get older, there will be more expenses; you will need money to beat inflation as well. Your expectations and standard of living may increase. So, how to earn more? By negotiating. Negotiating your salary can be a daunting task, especially when you are young and have less experience in the job. However, don’t hesitate to negotiate. Instead, ask your colleagues how much they are making in similar jobs. Check out the cost of living for your particular location and come up with a number that you are comfortable asking.
Unless you have inherited a substantial amount of assets from your parents or grandparents, money is a finite resource. There is only so much money that you have to make smart decisions on where it goes. A good way to determine this is to classify your needs and wants. A need is essential like food, water, electricity, shelter and clothing. Spending smart is also about reaching your financial goals early on and having a comfortable retirement. However, not everyone will have the same list of needs and wants in their lives. Sometimes it is clear about what your needs are and what things you can forego. Other times, this is a blurry line.
You can use the money earned for many things, to purchase your needs, wants and everything else. It is a big deal for many young people. Some of them buy a car or house. Then the time comes when they get to be behind the wheel or move into the purchased property. It can also be nerve-wrecking. What if the car gets into an accident or something goes wrong with the house? That’s what protecting assets is all about, for example, through insurance like auto or life insurance Singapore. The insurance will pay for the damage of your car, house or any individual. It pays for medical bills for injuries due to accidents. And it also pays for all of your liabilities mentioned in the policy. Remember that insurance isn’t just for big items. You can also protect your belongings, such as gadgets, jewellery and furniture.
The basic idea of investing is taking the money you have earned and saved and making it grow. It is that simple. However, the places where you can invest can get quite complicated. For example, the stock market is where you will find heavy fluctuation with investments. Savings account on the other hand is one of the safest investment routes. Some investments are liquid, in the sense, it is easy to get your money out relatively quickly. Note that the return on investment is not always straightforward. For example, the money you invest in your education can be priceless. Studies have shown that a four-year college degree in a desirable field is worth around $2 million in earning potential.