Budgeting Tips – Young Adults

It is common most of the young adults are scared of handling their own finance !. It is high time for them to  learn the basics so they don’t have financial crisis in the future. Below tips will ease you in this process.

• Know how to be self control. It is a easy way out to buy an item using credit card than save for it to buy. It is advisable to overcome this habit. Buy any item only if you can pay back the credit. Worse case within 3 months. Else don’t buy it. Ultimately the Credit purchases end up paying more than the product price.

• Manage your financial future. It is always better you manage your own finance than let others do for you. By reading and talking to the people who are knowledgeable or with family and Friends can improve your situation.  

• Money you have Vs Money you need. A good budget, expenses has to be less than the earning. Know how to control your necessities by which you can save money. Keep a tract of your spending have a note book or an excel sheet to do this.

• Be aware of on what you spend. In many instances the money is spend on unaccounted stuff. Shop only the “needs”. It is advisable to have a shopping list made in either in the notebook, paper or in your mobile. Which allow you not to over shop.  

• Begin a savings account. Savings is a good habit. Which should be taught to every child when he/she is young. It is great if they start practicing in the young days of their lives. It is not too late to start now !

It is most appropriate to save a percentage of a earnings every month. Just start saving some amount and most importantly ‘Continue’ to do every month.

• Have a Standing Order / automatic bill payment. It is difficult to keep track of payments. Specially utility bills and when you don’t pay on due date you might end up paying penalty or embarrassment of red notice issues. It is worth set up a standing order with your bank. E.g Automatic transfer of funds to pay Credit cards on the due date. Sign up for On-line bill settlements.

 • Protect your wealth. It is most important thing to safeguard thing what you already have. People know how difficult to save and buy new. Safeguard your properties by way of obtaining the house, Motor Insurance. Deposit your savings in risk free government guaranteed savings.