One of the key elements in growing from a young person into a fully fledged adult is getting to grips with everything to do with money! Money is the thing that you need in order to fulfil all of your life ambitions and make yourself comfortable, and it is the thing that you need in order to set yourself up for a worry-free future, so it is vital that you understand as much about it as possible! Here are nine smart money management tips that will guarantee a healthy financial future.
1. Saving Matters
No matter how much money you are making in the present, you need to always have an eye out for the future. The best and most practical way to do this is to put some of your salary into savings every month. Do it as a percentage rather than a set amount so you can ride with bigger and smaller salaries across your employment.
2. Time is More Important
Try not to be too obsessed with the money that you are making, because at the end of the day, if you are not giving yourself enough time to the enjoy the fruits of your labour, then what is the point?
3. Be Aware
You need to be roughly aware of where your money is going and how much of it is going every month. You would be shocked by how many people set up direct debits and then never look at them again.
4. Value Creation
Don’t worry too much about penny-pinching, but instead worry about the value creation of the purchases that you make. If your purchases are making a positive and helpful impact on your life, then the cost should be irrelevant.
5. Become More Valuable
No matter how old you are, you can always make yourself more valuable to the market through things like further education and further field qualifications. If you want to be in a higher wage bracket, then go ahead and tick the boxes that you need to tick.
6. Reward Yourself
Working hard to make money can turn you into a Scrooge figure if you never reward yourself for your efforts. Don’t be afraid to treat yourself when the time calls for it, because these treats are a reminder of exactly why you are so sensible with your finances.
7. Don't Underestimate Fast Cash
It is good to know some ways to ways to make money quickly when you are young but it isn't good to rely on short term gains. Use any cash you make quickly in good ways to promote your overall financial health.
7. Long-Term Investments
Those who are in the know prefer to partake in long-term investments that are going to be able to pay dividends for years to come, rather than having an immediate cash boost.
8. Right Accounts
Don’t let your money sit in a generic account that you made when you were a teenager. Make sure that your money isn’t dead and is working for you by transferring it to an account that pays good interest.
9. Invest in Yourself
Remember that you are the most important asset that you could ever invest in, so don’t ever make a financial decision that is going to impact on your life negatively.