From an early age I was taught to be smart with my money. No, my parents did not brief me on how to organize spreadsheets or plan family vacations. Instead, I was taught the invaluable lesson of being clever with my money, watching my parents squeeze pennies and deal with the implications.
As I grew up, I would save the money I got for vacations for my summer trips to Florida. Once on vacation I could buy beautiful shoes and clothes. I knew that if I did not want to be in the same position as my parents, I would have to save, plan and prioritize my money
As a young adult, it is even more important to understand the value of money and to use it responsibly. The future only gets more difficult as your responsibilities and requirements for your bank account increase. So, if you learn how to manage your money from a young age, this is a good foundation for a successful financial future. Here are six tips I have stayed in my entire life so far:
1. Save
This may be a breeze, but saving is more difficult than you think, especially if you are a poor student. Taking away money from every paycheck, however, can quickly add up!
2. Set goals
Saving your money is much easier if you have a goal that you want to achieve. Whether you buy concert tickets or a plane ticket to see your best friend, it's important to set a goal and stick to it.
3. Do you have an emergency fund
Back to save. This is especially important when it comes to a financial safety net. Ensuring that you put some money aside, when something unexpected happens, when your car suddenly needs new tires or you lose an expensive textbook, is the key to being prepared for the future. There is nothing worse than adding more stress to an already stressful situation by not having enough resources to meet your immediate needs.
4. Get a credit card
The credit buildup takes a while. Building strong loans takes even longer. Nonetheless, credit cards are a great, easy way to build credit when you're young. If you have a credit card, you also learn how important it is to stick to the purchasing limits.
5. Do not pamper yourself with every wish
We live in a candy store. We are constantly exposed to new clothes, technologies and lifestyles that are just waiting to be bought by hungry consumers. As much as we try to hold ourselves back, we see the products again on the social media, making it even harder to say "no" to the things we want. While the periodic yielding of our wishes is acceptable, excessive spending will devour your budget and make other accounts underfunded. It's important to "treat yourself", but when will it get out of hand?
6. Trust your money
Saving money and setting goals has never held me back. I was able to buy my first car without a loan, plan a trip to Europe with my sister and put money into a Roth IRA every month. When you learn to control your spending habits and set your own financial goals, money becomes an instrument that frees you and does not control you.
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