They say youth is wasted on the young. That can be true when it comes to finances — many times it’s only through trial and error that you learn the right moves to make. One way you can be smarter about money? Start now. If you’re young, time is on your side. Here are some money rules young people should follow.
Squash Your Ego
Gaining real savings takes sacrifice. This can be hard. You finally start making some money and you’re supposed to… Put it away? Yes, this is true. You need to resist spending now so you can rest easy later. That takes checking your ego. Don’t keep up with the Jones’. Many years from now, when your savings accounts are well-stocked, you’ll be happy you kept your ego at bay.
As CNBC notes, the fastest way to get out of debt is to never accumulate it. The key is prevention, not treatment. Do your best to stay on top of bill payments. Set up automatic payments and pay more on your student loans each month (if possible). If you have some credit card debt, pay down the card with the highest interest rate first. The more you work to keep debt low now, the better off you’ll be in the future.
Before you commit to sharing your life with a spouse or partner, make sure your attitudes about money align. You want to know everything. How much debt do they have? Are they paying it down? What’s their take on spending vs saving? What long-term financial goals do they have? Be wary of someone whose money views differ greatly from yours. This is someone you want to spend the rest of your life with. Their money moves will impact you and vice versa. If you match up well, you’ll have a greater shot at long-term financial stability.