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Financial Management for Young People

Collectively, the youth aged 18 to 25 are the most powerful spenders in society, and are challenging the position of the baby boomers when it comes to who has the bigger purchasing power. Here are some tips to keeping a good financial track record.


Having a specific budget allows you to get a good idea of your financial status. You will know how much you are keeping out of work, and how much you should be earning to get a decent lifestyle. Manage your financial house by budgeting. Calculate the amount of expenses you need on a daily basis. At most, your daily expenses will only comprise food and transportation costs. Make sure that you do not spend beyond what is indicated in your budget. Obtaining a payday and installment loan helps the budget.

Budgeting is a type of plan that organizes the financial aspect of your life. While budgeting is not rocket science, many people find it hard to stick to a budget. One of the best ways to control yourself from spending more than what is allotted for the day is to give yourself allowances. Avoid bringing large amounts of money in your wallet. Keep only an amount that will suffice for two basic meals, and a bus ride going home. You can keep the rest in the bank, or at home. Avoid bringing your ATM card in your wallet, because this open up temptation to spend more money.

Limit Yourself

You have to realize that you cannot afford to go to Starbucks everyday and get your favorite Venti Frappucino. You may treat yourself to these treats when you have savings. Daily allowance and salary are not savings. They are meant to be used to pay for your bills. You are also free to apply for a payday or personal loan.

Pay Off Debts

You must also discipline yourself by paying off debts immediately and consistently. Credit cards are very attractive and very easy to use because they provide easy access to goods and products sold in retails and malls. The reality is that you are dealing with actual money, and that most of the things you buy with credit cards are things you cannot afford to buy in the first place. If you ever have to pay for anything, regardless of kind, make sure you do it with cash or check. Credit cards will likely place you in a debt spiral that you will get stuck in if you have not acquired the financial discipline of saving and controlling what you buy.


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