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It’s easy to live your life without thinking about your finances in a critical way. You can just get your paycheck, spend it on nice clothes and nights out with friends, and then be broke until payday. That is unless you want to actually take control of your financial future.
There are a lot of ways you can apply yourself to bettering your financial situation. The most critical step is the first one: you need to learn about money management so you can begin taking control of your own finances.
It’s not your fault that high schools don’t teach a basic finances course. Some families also never talk about finances with their kids, either out of a lack of financial knowledge or a desire to avoid an “impolite” discussion of money. However, it is up to you to take your education into your own hands and learn about money management now.
If you don’t know any better, you’re likely to make bad decisions with your finances. You might make a bad call on a loan for a car you can’t really afford. Your friends could convince you to go out every night and blow all your cash at the club. You really don’t want to get stuck in one of these situations.
Once you’ve learned the basics of money management and financial planning, you can actually make a plan for your money. Start simple and just get yourself a savings account. If you’re not used to saving, just make it a habit to put back twenty percent of your income every paycheck into your savings account.
You want a savings account instead of just a jar full of money because a savings account accrues interest. That means that the sooner you start saving, the more you’ll have down the line for a rainy day.
It’s one thing to make a plan and say you’re going to start saving money. It’s another thing to execute that plan. Make sure you’re really keeping with your money goals. If that means you skip going out with your pals a few times each week, that’s okay. Invite your friends to do things with you that are less expensive, like a fun movie night at your house. They might appreciate giving their wallets a bit of a break, too!
Just keep at your money goals and start thinking about more in-depth investments. Think about your retirement savings. You could even consider getting into investing! But first, learn a bit about budgeting and get your savings account filled up. Everything else will flow from your baseline knowledge of what you’re learning today.
