I recently overheard a conversation between two young men who were discussing payday. When one asked when the great occurrence would take place, the other replied, “Tomorrow – so I’ll be loaded for one day.”
Now while a large part of being young does involve living in the moment, taking this ultra short-term approach to money management is a recipe for disaster.
Getting into bad financial habits as a young person, can be difficult to break out of as you advance in years.
So get started on the path to a prosperous future, by following these simple tips:
Budget Basics
Begin by working out exactly what money you have coming in each month, and what your outgoings are. This can be a challenging and yet enlightening process! It’s amazing to see how the little things soon add up.
Analyse the information you have recorded and identify where to reduce costs. For friendly professional advice on budgeting, and all aspects of money management take a look at debt management solutions at http://debtrescue.com.au/. Using their budget planning skills they can help put together a custom-made budget that works for you.
Just don’t base your budget on spending every last cent – otherwise you won’t have anything left to use for the next tip!
Start Saving
Saving regularly is a great discipline to get into at an early age. Open an interest bearing savings account, and get into a routine of stashing whatever cash you can.
As well as having some rainy day money, aim to save up for major items which you know you will need in the future, like cars, houses and your education. You won’t always be able to rely on the bank of mum and dad!
Curtail Credit Card Spending
Credit cards offer easy access to money – and that can be tempting. Debt management solutions by debt experts encounter many people, young and old, who have racked up considerable debt on credit cards. While they can help them develop strategies to repay the debt, the best course of action is to avoid accumulating the debt in the first place.
Many people fall into the trap of paying off the minimum required each month, but this is a hole which is hard to get out of. Those trainers you want may look great now, but do you really want to still be paying for them in ten years?
Buy Used – It’s Vintage Darling!
Gone are the days when people wrinkled up their noses at the thought of buying second hand goods. Whether it’s a car, furniture or some retro fashion, there are major savings to be had if you go for goods which are pre-enjoyed. And you’ll be able to make your own unique style statement, without the fear of being copied by your peers.
But if you are a stickler for new items, at least shop around. Don’t take the lazy option of buying from the first place you go to – instead do some research and ensure you get it at the best price possible.
Extra Earnings
Another way to maximise your budget is to boost it with some extra income. There are plenty of opportunities to earn some extra cash by offering your services as a babysitter/dog-walker/tutor – depending on your particular skills set.
Cast a careful eye over your belongings and see if you could raise some extra money by selling things you don’t need or use anymore. Auction sites are a great way of recycling your unwanted goods.
Ask For Help
If you do find yourself in debt, don’t be afraid to ask for help. There are plenty of people out there who can help you through these difficult times, including the friendly team offering practical debt management solutions.
Options include debt consolidation and the Debtstroyer – a flexible and informal debt agreement with creditors. They offer a realistic and accessible way of escaping debt. There’s no need to feel alone when their help is at hand.
Author Bio: Alexander Lou Sheldon is an experienced financial planner and analyst. He has significant expertise in investment advice, as well as mergers and acquisitions.
Although he is mainly involved in high finance, Alexander believes that effective money management begins at home. He is an advocate of competent budgeting and has been impressed by the advice and debt management solutions by http://debtrescue.com.au/.