Let’s all accept the fact- finances seem mind-boggling to all of us. And if you are someone who has recently started self-managing your finances, it seems all the way more tiring and daunting. Honestly speaking, for the beginner groups of young adults and teenagers who have stepped into the world of financial independence, learning about finances while managing them and balancing other things might get exhaustive. And that is why we bring you the following 5 tips to get started and learn about self-finance management so that we can assist you in your journey. So, get ready for some note taking and an information-packed article!
Make a spreadsheet
This cannot be stressed enough that having a written/digital record of your budget saves you so much of the mental confusion that happens with every expense you make. Though you might hate how mathematics-like the spreadsheet looks, and no matter how much you hate making that excel sheet, let me tell you that you will be thanking me later! Writing your expenses, what and how much goes where, how much bank balance is left at the end of the month, will help you manage those bills in a much more efficient way than it would when you have it in your head. And honestly, your mind would be clutter-free, and how cool is that!
Learn The Art of Self Control
Having your own money to spend however you want it to can cause you to go berserk with your expenses, especially in the initial few days. However, this habit may cause you to regret in the long run. Learning control on your spending urges will ensure the pleasure of spending money wisely and consistently in the future.
Start an Emergency Fund
This is again a very important pre-requisite for the new additions to the ‘handling their finances’ category. Often thinking about having the thing we love with our money, and saving enough for the next one, we tend to forget that life is not predictable. And as per the wise saying, “Wish for the best, but prepare for the worst”, though we hate the fact that some emergency might throw us off, the reality is, we never know. And as good as it is to look at the bright side of things, it is also again for the best to keep some funds aside only for the purpose that you might need them in an urgent situation.
Invest in Yourself- Sort Your Taxes
One of the basic and necessary procedures that come with being the owner of your own money is paying taxes. So not only do you need to be personally vigilant with your taxes, but what I would suggest is to take a crash course, or binge on youtube videos that teach you about taxes, investing and get yourself aware of these terms. Yes, as boring as it gets to get your feed filled with all finance videos, but trust me, this will save you so many head scratching tax filing sessions.
Invest, Invest, Invest religiously
This is the edge you need to secure your post-retirement assets. Agreed, banks are the easy and risk-free options when it comes to investing, but the returns are far low as compared to the investing in the stock market. Yes, there are risks and therefore, I would advise you to read and educate yourself before going in to invest your hard-earned money. Another tip that works well in continuation is to invest regularly and dedicate a specific percentage according to what works for you to invest in specific time intervals.
With these 5 tips, we wish you all the very best for this journey into the world of finances. Happy learning!
Also Read: What is Finance? Types of Finance