Financial Commandments in Your 20’s

Financial Commandments in Your 20’s
  • Opening Intro -

    Statistics show that 44 percent of young people aged 18-24 have 0 dollars in their bank accounts or have not even opened up a bank account.

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Finance is a broad term that can take several meanings which include;

  • Finance can mean funding an enterprise or a person.
  • It’s also the process where governments, individuals and large companies save and manage huge amounts of cash.

Finance is a sector that affects us in our day to day lives starting from children going to school, the youth and adults who are eager to invest and the older people who are waiting for their retirement benefits.

Statistics show that 44 percent of young people aged 18-24 have 0 dollars in their bank accounts or have not even opened up a bank account. This trend is not only common to the youth but has also extended to the adults beyond the age of 35 where a survey by GOBankingRates survey indicates that 62% of adults possess less than 1,000 dollars in reserves.

Here we take a closer look at the youth especially to those in their 20s on how they can save money for the future by following some of this simple financial steps as outlined below…

  1. Developing a marketable expertise

    Most of youths are either in college or in their first job in their twenties. Developing a marketable skill is important to those who probably for various reasons hate their jobs or want to be self-employed. Expertise does not only include development of a completely new skill but it can also include enhancing your current skill may it be a career or otherwise.

  2. Having a budget

    A budget reduces the risk of overspending especially to first time earners. Receiving your first cheque and budgeting it can make the difference between saving and paying up your bills or taking it all down the throat with friends in your favourite pub. One should learn to live and spend within his or her financial limits.

  3. Insurance

    Insurance is important due to tomorrow’s uncertainties. S**t happens and one should visit a trusted insurance to get insurance covers. They can range from your phone to cars and houses. Insurance covers an individual from spending a large sum of money at once especially when calamities such as car accidents or fatal illness happens.

  4. Having emergency funds

    This are emergencies that are not covered by the insurance cover. It’s also known as the rainy day fund. It’s advisable to keep away at least 10% of your earnings. This funds can be of use especially when making up for debts or accidents that have gone against your insurance cover policies.

  5. Building up a credit history

    A credit history is most important when one needs to secure a loan through credit cards “spending beyond what you have”. Of course a credit history cannot be given unless you have credit first, which comes from the money you have saved with your preferred bank.

    Other factors include

    • Saving for retirement.
    • Building emergency moneys.
    • Making debit repayment plans

Although some quotes and sayings can discourage saving among the youth, those who are focused on having a brighter tomorrow should not take their eyes off the price. Some of this quotes and sayings include;

1. ‘YOLO’ meaning you only live once.

2. Quotes such as. ‘We are not trying to live with safety nets; we are trying to live on the edge’

What every young person should know is that financial freedom is not a destination but a journey which starts from the day you drop that spending habit and save that first penny in your bank account.

Consumer Tips reference:

TIPS: increase savings

 
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Last update on 2020-01-16 / Affiliate links / Images from Amazon Product Advertising API

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