1. Begin educating yourself about personal finance. It was scary but I did not also learn to be more aware of my financial literacy. All I knew when I was to make more and more money. But know what you do not really need a big amount of money before you finally become financially literate. Start studying now or else you make money but you can never keep them.
2. Specify a budget. Oh no your friends are traveling too much and some are partying too much and even shopping too much. So what? For me the best advice I could give you is create a budget of how much can you spend daily? weekly? or monthly? If you can learn to create the limit then you are safe from being trapped to a bad debt.
Let them enjoy but hold your own wallet. You should know how much you can spend, save or waste.
3. Research your health insurance options. I am guilty again on this. I remember buying my first Macbook, it was insured and someone asked me if I am insured. Sad reality we want to secure our wants versus the need. My best advise? Make sure not to wait for your 40’s before you buy an insurance. Remember the early you start the smaller you pay and the better benefits you can choose and enjoy.
4. Create an emergency fund. You know want their might be a recession tomorrow or next month or I don’t know and let me ask you – any emergency fund on hand? It’s scary right? What if you will lose your job today, can you survive? Save a little amount and be consistent.
5. Avoid credit card debt. I had really bad experience with this and my best advise? Never to use credit card unless you can pay it. By the way I never used credit card for so long now – no obligation and I don’t spend more than what I make. Please do not believe in enjoy now and pay later mentality.
6. Track your credit score. Oh yes! I cannot disagree.
7. Don’t forget your retirement account. Just because you have an emergency fund or savings account then no need of retirement fund? No! Save a little and be consistent in doing so.
8. Plan your debt repayment for any loans. Do it! Can’t you just live loan free? 🙂 Ok I got it but please try to settle your loans and as soon as you pay it never to get a loan or make it your last option. Avoid borrowing money or lending money from or to a friend too. Money is money – it can ruin beautiful relationship. So please avoid it as much as possible.
9. Find another source of income. So you are paid well? Good but don’t be dependent in one source. It’s about multiple sources of income. Trading your time over money will never give you the freedom you desire. You can end up losing from inflation and running the rat race for your most sacred bills. You don’t want that right?
10. Practice bargaining. I love to bargain. It’s an art of negotiating. Whatever you buy ask for a discount or ask this – can I find something with the same value at the same or lower price? Don’t be ashamed you are just being smart with your money.
Starbucks have membership card where you can havefree Grande in each 10 transactions maybe time for you to register for that. Try including some deals on travels too – later I will share where or how I bargain for my trips.
11. Know where you are going financially. So sad again, not all people are willing to prepare for that financial goal. Don’t be scared – preparation is better that being surprised by the sky rocketing bills and responsibilities like hospitalization or even children’s education.