How To Be Financially Responsible When You Are Young: Experts State 5 Steps To Help You

Introduction

  • Have you always seen your parents suffer financially and do not want to make the same mistakes as they did?
  • Are you aware as to how you can be financially responsible and successful in the future once you start earning?
  • Do you know how some of the world’ most successful people manage to bring in financial responsibility in their lives?

Imagine you have finished college, earned your degree, got a great job and are now planning to take over the world. We have all experienced the same mixture of excitement and nervousness. One important thing that some of us focus on and make it the main pillar of their life is managing finances.

I am not ashamed to state that the majority of us do not even pay any consideration to how we are going to manage our money post our first paycheck. All we can think of is using the paycheck to buy things, which were always denied to us and we are now at liberty to get.

In this article, we speak to financial experts and get their opinions on how one can be financially responsible from a very young age.

How to be Financially Responsible in 5 Easy Steps

  1. Start Savings and Investing early-

Most young people make the mistake of leaving the saving and investing part to a later period. However, the fact of the matter is that this rarely happens at the said ‘later period’. This is because financial habits are touch to change, and they stick with you right through your lives.

It is important that you allocate a minimum of 25% of your paycheck to savings and investments. This will help you cumulate a significant amount in the next three to five years. Do not touch this at any costs, unless it is necessary to.

  • Avoid making Credit Cards a part of your life-

Ask any seasoned investor or self-made millionaire about their opinions on credit cards and they will always refer to them as a vicious trap. Even though the lure, attraction, freebies and other innovations might pull you towards them, it is best to avoid them at all costs.

Do not make credit cards a part of your life. They foster a vicious cycle of debt, which you will never be able to get escape from. It is always best to spend your own money through debit cards. This is another habit, which you should look to follow as soon as you start working.

  • Gain knowledge and keep improving yourself-

When we are young and stuck at our first job, we always keep thinking of ways to earn more. This is something, which is natural. But, if you want to put it into practice, you need to keep improving yourself.

Learn a new skill, take up a side hustle, or do any other thing, which makes you better professionally. You can take this up with your existing employer, or negotiate with a better place of work. According to Rich Dad Poor Dad, improving yourself at every step by adding to your knowledge is the only thing, which is going to help you be successful.

  • Prioritize Expenditures and avoid making unnecessary ones-

The $1000 USD Lazy Boy, which you so wanted can wait. It is better to invest the same amount in stocks, shares or other investment opportunities. Make a list of all the expenditure you incur every month, and prioritize them.

Rents, savings, investments, transport medical and food should occupy the initial section of your list. Travel, parties, movies, drinking, etc. should be relegated to the last pages of the list. This is how you will save money and be financially responsible from a young age.

  • Train your mind to be positive at all times-

When we are young, peer pressure and social media can be a huge distraction, which can divert us from our goals to be financially responsible. Many of us crack under the pressure of being different, or feeling left out. However, it is important you train your mind and have a positive outlook.

Financial responsibility is setting you up for a great future. One in which all these people who were drinking, partying and maxing out their credit cards will be working at the car wash. Never feel low and always be confident in your decisions.

Conclusion

By surrounding yourself with like-minded people, reading great books, improving your skills and learnings and saving and investing, you will set yourself up for financial success at a very young age. Can you think of some other steps, which can help us be financially responsible? Let us know in the comments section.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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