Managing money is never taught in schools, yet being economically stable is a huge factor towards determining ones success. Most of the time, people learn about finance through life and experiences. If you fall into the criteria of being young and single, then this article is for you.
- Open two basic bank accounts
You need to open a basic checking and savings account that can enable you to separate and align your financial goals. Pick a bank that is favorable to your needs and is convenient for you. A good comparison can be seen on our platform link herewith.
- Create a budget
This may seem boring and tasking but a budget is the best form of discipline you can develop at an early stage to help you take control of your income and expenditure. Budgets help manage your financial expectations and enable you to plan ahead.
- Begin establishing a line of credit
Not all credit is bad, especially when you get into the habit of paying for your credit cards and loans on time. This gives you a good rapport with your bank and will increase your chances of getting approval when borrowing for larger amounts.
- Start investing in a retirement plan
Retirement plans are a great way to save money that will enable your gains to compound faster over time. The more you invest the more you earn, and when you retire, you will have money to fall back on.
- Increase your financial literacy
Pick up a book, Google a term and learn about finance. Learn how to save wisely, invest strategically, read about finance and business as you keep track of their developments.
- Select your partner wisely
Choose someone who shares the same values as you, not only just where money is concerned but also their ethical and moral values. Choose someone who can help you build your financial future in a positive way.
- Be prepared for the unexpected
Prepare by stashing away some money every month into an emergency fund that will come in hand in case you get retrenched or the like. This should be a separate account from your retirement plan. This is because dipping into your retirement plan before it yields costs you more in the long run.
- Learn about investing and invest
Investing is a great way to ensure you make some extra money on the side with your savings. This can be in short term or long term investments. The best way is to learn how they work and start investing as soon as you can.
- Health leads to wealth
It is common knowledge that a nutritious diet and exercise are good for your health. However, an unhealthy diet and lifestyle has heavy repercussions on your wallet.
- It takes time
You must be patient and get into the practice of developing financial discipline. Realize that financial independence is dependent on a culture of consistency and patience.
Further reading: 10 Things Every Student Should Know About Money