Everyone that is meant to guide you through life – from your parents to your teachers – persistently reminds you how important it is to do well at school so that you can get a job that pays you a huge salary. However, a salary isn’t what makes someone rich; how you manage your money is what does that, which begs the questions, “why is there no formal education on the matter?”
Now we could argue this matter until the theoretical cows come home, but that wouldn’t achieve anything. We’re also not best placed to offer much in the way of a solution. What we can do, though, is teach you some of the money lessons almost everyone wishes they had learned sooner. Hopefully, it will help you get it right first time around.
Tackle Your Debt Head-On
You’re going to rack up a pretty substantial amount of credit card debt. We know this because everyone does it. The problem is, no one knows just how bad a life of debt is until they are in a pickle and the debt keeps growing. Why kids don’t get taught about compound interest at school is ludicrous. Anyway, debt grows the longer you hide, so make sure you pay off your debt fast and pay off your credit card each month.
Save Every Penny You Can
Most people get into the habit of spending their money first and then saving what they have left, but it is far more beneficial to do it the other way around; to save first and spend what is left. Financial freedom comes from what is in your account, so while it is all good and well to live for today, there are plenty of tomorrow’s where you may wish you had saved. It could be you lose a job, want to put a deposit down on a house or start a company. That’s where saving comes in.
You Can Always Save More
Whether you are grocery shopping on a Saturday morning or working out how to plan some truly memorable funerals on a budget, there are always ways to save money, and that is an important thing to remember. Good marketing makes you want the branded cereal, but it doesn’t taste any better. Spending a $1000 on the iPhone X may give you momentary bragging rights, but it is barely any different from the much cheaper iPhone 6 or 7. Save what you can and put that money away.
Plan That Pension Early
If all goes to plan, you are going to need your pension one day, which is why you should start paying into it as early as you can. We mentioned compound interest working against you earlier, well it can work absolute wonders when it’s on your side. We know retirement can seem a long way off, but it will remain a long way off unless you start getting the ball rolling now. That’s why you should get the ball rolling and speak to a professional that can help you plan your financial future.