In the era of technology, if we talk about social media, academic, personal development, young people are well prepared in advance, but what about financially?
Are they fit and prepared financially for securing their life in the future or after retirement? We all know about the day to day expenses to be incurred, it can be college fees, education loans, or how can someone forget about online shopping and Entertainment?
Yes, I’m talking about personal Finance responsibility. It’s your turn to secure your future by making yourself financially independent while taking other duties.
Now, the question arises from where you can get all the excellent advice when it comes to your finance so that you don’t end up with the middle age.
Here is some best financial advice for young people to follow to become financially independent without relying on anyone else.
- Keep money inflow and outflow track: People don’t like to keep records of their earning and spending but keep looking for the options to save money. You must be aware where you are spending your money and is it worth to spend it or save it?
For keeping a track, monthly budgets are always recommendable. Everyone is addicted to smartphones now, and you can take benefit of creating a checklist of daily expenses and Income by using any app. It will also generate interest and encouragement when you start saving form your salary.
- Start Investing: Following Investing advice at a young age is the best advice. If you haven’t yet started to invest, you are making the biggest mistake of life. Only the problem is people afraid to take the risk, but this risk is worthy of taking at a young age. Investment is something creating money out of your own money without making efforts.
Depending upon your choice, you can invest in the long term, medium or short term plans to diversify your investment for availing the maximum benefit.
There are many investment plans like Mutual Funds, SIPs, Equity instruments (stock), etc. which will help them again to manage their finance and the get maximum benefits not only in terms of money but also availing many other offers of discounts, higher rate interest benefits, tax saving, etc.
- Buying a Home: At your young age, you can make a plan to buy your home and avoid paying higher rents and shifting from one locality to another. Surveys also revealed that 15% of the young generation said buying house is the best financial decision they have ever taken.
It is also the best investment plan as renting out a part of the property can bring an extra source of income. Investing in real estate now and sell it in the future will let you enjoy an unbelievable amount of profits.
- Earn extra with the Internet: Risky !! One should be aware while earning the income online as there is no doubt that scams held, but a proper research about making from online can surely help you to earn and learn more like with the help of freelancing work, selling an E-books, Teaching online, etc are few of the reliable work you can do to earn extra income in your idle time.
- Take care of Health: You must have heard “Health is Wealth” but how many of you are taking care of it? The fact is that taking care of your physical health will help to save you a lot of money over time. You won’t have to pay high premiums on your health and life insurance.
- Retirement Savings: Make sure to have enough savings to live your life after retirement. After a stage, you are somehow not much capable of earning as much as you are earning now. You need to prepare your retirement in advance.
- Prepare Emergency Fund: The future is unsustainable, so the emergencies are! It’s always a good idea to have an emergency fund for some medical issues or sudden huge expenditures than to run for a loan and create a financial burden of paying EMIs. An emergency fund will help you to come out of the problems smoothly without being stuck in a bad situation for a long time.