Recently, a nineteen-year-old man took to the internet seeking financial advice from men. He explained he was “just starting out” and wanted help with management and investing. Here is some of their helpful advice.
1. Invest in Your Retirement Early
One person suggested investing in your retirement as soon as you begin employment. For example, a 401K or another type of retirement plan will be highly beneficial down the road, and it’s always good to start saving early.
2. Always Keep a Financial Safety Cushion
One man recalled seeing a statistic that said nearly 50% of US households could be sunk financially by any unforeseen expense over $500. Someone else replied, maintaining an emergency fund of $1000 for a safety cushion for financial hardships.
3. Find a Good Work-Life Balance While You’re Young
Others agree that life is about a good work-life balance, and finding it while young is all the more important. Somebody added you only live once and have fun while you are young. You could miss out on so much when focusing exclusively on financial readiness.
4. You Don’t Have to Keep Up Appearances
One man recommended not to fall into the lifestyle trap of spending more as you begin to make more to keep up appearances. They continued that instead of spending more on material things, “spend” more on your savings and investments; you will thank me later.
Another person confirmed you need to take half of your raise and automatically deposit it into an investment or saving account instead of spending it on material possessions.
5. Find a Cheap Hobby
Video games came in at number five on this list. It’s an inexpensive hobby to take up would be gaming. One user explained how the “hours to dollars” ratio of time spent while gaming could be beneficial as a pastime, especially regarding cheap living for a young homebody with no financial obligations.
6. Takeout is Way More Expensive Than Eating at Home
Several people declared eating takeout from restaurants and delivery service is far more expensive than eating at home. Learning to cook and eat at home is cheaper, simpler, and a “good option.” A few quick-fix “options in the freezer or pantry for when you don’t want to cook” are still healthier than eating takeout.
7. Begin Your Credit History, With Caution
Get yourself a credit card with a cash-back benefit. Most companies offer a minimum 1% cash-back bonus on many purchases. However, here is where caution is warranted, “don’t run a balance” on the card, one individual warned. Instead, pay the balance off monthly, and you will be golden.
8. Create A Budget and Spreadsheet
A group of users stated that you should record your spending and income using a spreadsheet to create a budget. Using your budget, you will learn to create and manage your “monthly income goal” by tracking your income, bills, and average spending. Keeping your monthly goal in mind helps to eliminate any unnecessary spending you may do.
9. Develop Good Financial Habits
Saving money should become one of the most significant financial habits anyone has learned or been taught. Start by selecting an amount you can afford to save every month.
One individual mentioned once you have a number in mind, save that much every month, and when you receive a raise, contribute a large part of your raise to savings as well; this “makes it less likely that you’ll notice the loss of spending money.”
Popular Reading: 47 Surprising Ways to Make an Extra $1000 a Month
10. Monitor Your Credit
Aside from creating and maintaining sound financial habits, you must remember to monitor your credit score. A final person added that monitoring your score is as important as your financial habits.
It is no one’s job but yours to maintain your credit, and someone’s clerical error can lead to issues for you. Please “consider creating a Credit Karma account” because they could be beneficial.
This thread inspired this article. Do you have any helpful tips to add to this list? This article is inspired by the internet and does not necessarily reflect the views or opinions of Wealthy Nickel.
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