1.Don’t get in debt.
Getting in debt will create huge financials problems, even if the best debt management practices are used. Debt is essentially paying more money to have money. That’s not a financially sustainable practice.
2. Recognise the fact that you’ll want to keep up the same lifestyle as your friends/acquaintances. This could mean spending more money than you are comfortable with.
“Keeping up with the Joneses” is a real problem many young people experience. This problem has been exacerbated by the social media. Looking at social media content with a critical glance, will help to assess the lifestyles of others more realistically.
3. Start investing early. The earlier you start investing, the higher your returns are going to be.
It’s not a secret that the S&P 500 index has historically produced positive returns, even when all financial downturns are taken into consideration. The earlier an investor starts investing, the more he or she will be able to take advantage of the historically positive returns.
4. 50 years will pass by quickly. Have a solid plan for your retirement early, because the earlier you start, the cheaper it will be for you.
Investing smaller sums in the youth of a future retiree will produce larger gains than investing larger sums in later years. Human life span is short, and the age of retirement will come by more quickly than expected. An early retirement plan is essential.
5. Things, even expensive ones, bring only a temporary excitement. Don’t spend all your savings on them when you’re young.
It can be tempting to spend savings on material things. Especially, in younger years, when all financial worries seem very far away. However, material things only bring a temporary burst of excitement. Material things rarely are assets, and more often, they are unneeded liabilities.
6. Renting isn’t always the cheapest option. Calculate if renting is really cheaper than striving to buy your own house/apartment.
In some places, taking out a mortgage is cheaper than renting. Some easy calculations can help to identify this. Not calculating whether a mortgage or renting is cheaper can contribute to unnecessary expenses.
7. Governments have plenty of programmes for young people. Programmes for young entrepreneurs to young professionals exist. Take advantage of the free money and experience they offer.
It’s not a secret that governments offer more support to younger people rather than to middle-aged ones. Not all government programmes are worth participating in, but some can provide much-needed experience, or financial support.
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