It is no secret that a large number of adults today have financial problems, most of the time living from day to day and stretching their budget as much as possible to make ends meet.
The reason for this unfortunate situation is the lack of information.
If they had received adequate financial knowledge since they were young, most of these adults would be in a situation of financial stability and even abundance.
This time you will have the opportunity to learn 3 financial tips that can make a big difference in your financial situation in the future; especially if you are still in your youth.
Today, despite the existence of many ways to learn about various topics, personal finances are not on most young people’s radar. Very few are interested in learning how to manage their money.
This “ignorance” leads young people to engage in bad practices, which eventually become an unstoppable snowball, plunging them into ever more financial straits.
There is a lot to be said about personal finance issues, and in our blog you will find several posts with tips about it, but this time I will tell you just three basic things that will undoubtedly make a big difference.
1 – Don’t get into debt with liabilities
Personal finance liabilities are those things that involve an expense, for example, a car, a house or even a credit card.
It is normal that many young people are excited about acquiring their first debt, since this implies being able to drive their first car or have their first vacation financed with their credit card.
But this is very risky, especially if you start making a habit of it.
Considering that in your youth you begin to receive your first income, acquiring some debt or buying liabilities can make a large part of your money go to pay interest or other expenses related to maintenance.
This will greatly limit your ability to save and invest.
The excitement of starting to earn money should not lead you to consider that every peso you receive must be spent.
Instead, it’s better to try to keep yourself on an austerity basis, like when you had no income.
This way you will be able to save a great part of your money and thus have the capital to make your first investment.
“Let the returns on your investments pay for your luxuries in the future.”
I understand that in youth, especially in the millennial generation, everything is desired immediately. We are a generation that does not want to waste time and prefers momentary gratification to that which can last.
As far as our finances are concerned, we must be more intelligent and always give priority to future results.
It is very probable that if you delay the purchase of your first car or that dream vacation, and you invest that money intelligently, you will be able to enjoy even better things in the future.
2. Build a good credit history
It is very likely that you will consider buying a credit card as something negative, especially considering what I just told you in the previous point.
The reality is that building a good credit history can open many doors for you in the future.
Buying a credit card doesn’t necessarily mean you’ll get into debt. The key is to learn how to use it correctly.
So that you never have problems when using a credit card you should keep in mind the following: “Never spend more than you have“.
The best way to build an excellent credit history is to use your credit card to pay for some fixed expenses, which you would do anyway with a debit card or cash. And pay off your card every month.
It’s that simple, use your card only to cover those expenses for which you already have the equity.
This way you will never have debts that can take away your sleep, nor will you fall into interest payments. In addition, this practice will lead you to have a good credit history.
It is worth mentioning that acquiring a card is not the only way to generate a credit history, there are some services that are considered credit, you can even start by hiring a cell phone plan, and that will add points.
3. Pursue your passion and make it money
Every day the idea of working on something just because it makes us money is becoming more and more obsolete. Today’s youth show more of a desire to make an impact on the world.
More and more young people are aware that they don’t want to spend their whole life working on something they don’t like, just to get paid.
The understanding that life is only one and can be gone in an instant, has created in many people the desire to live to the fullest every day and to seek to do activities that they really enjoy.
Today the main search of youth should be to find their passion, that thing that they enjoy doing with their heart and that they are really good at.
If you know that there is something you like to do and you notice that you have the talent to be able to develop that activity, it is time to start preparing yourself and become a professional.
Today through the internet and all the new technologies, it is very easy to make our passions a business.
Who would have thought that some people traveling or playing video games would be able to capitalize on those activities. Today, through platforms like YouTube several young people are earning money every month making videos of those experiences.
It doesn’t mean that any of your passions can make you money, but with all the resources we have available today, it’s a matter of finding what you can contribute to the world and enjoy doing, so that money becomes a consequence.
“Money will always be a result of how much you contribute to the world.”
Therefore, it is important that when you are looking for your passion, you identify which of your talents is the one that can generate the most benefit in people.
When you find your dream, it is important that you hold on to it with determination. In the end, success only comes to those who are willing to fight tooth and nail to achieve it.
I am totally convinced that if you apply these 3 tips in your life, your future will be brilliant. I wish you the best of success!
