5 Financial Tips for Young Men
If you are struggling financially, learning simple financial tips can change your life for the better.
Understanding personal finance has become more important than ever. Unfortunately, financial courses are rarely taught in high school, so it has become far too common that young men find themselves in bad financial situations once the real world hits.
Between student loan debt, sky-high rent, and low paying jobs, it has become extremely difficult to excel in the financial world.
With that being said, there are financial tips and practices that can help you with your financial burden.
Lets take a look at the most important financial tips to help you with your money, that way you can start living your best financial life.
Learning to spend money responsibly can be challenging, especially if you are someone who likes nice things. It’s easy to go to the store and spend money you don’t have with those pesky credit cards, however you really have to ask yourself if it is worth it.
How many times have you ended up buying something you didn’t need just because it was nice? This is something you need to be more mindful of. Next time you’re about to impulse buy something ask yourself if you really need it.
I’m not saying to never treat yourself, because thats no way of living either, but a lot of the time people end up with loads of credit card debt because they buy stuff they don’t need.
You have to take care of what matters first- payments, bills, utilities, etc. If you have extra money after the important stuff then feel free to treat yourself, but don’t go broke trying to keep up with the latest trends.
One of the easiest ways to go broke is comparing yourself to others. It is easy to get envious of what others have- vacations, new clothes, new cars. Just remember that you are running your own race.
Set financial goals for yourself and execute.
Track Your Money
As mentioned earlier, a lot of people end up in terrible financial situations because they have no regard for their spending. It is honestly crazy the number of people who spend more than they actually make on a monthly basis.
The cause of this is simply because people do not track where their money is going. They may have a rough estimate of how much they make each month, but they do not keep track of what is coming out of their pockets.
The easiest way to keep track and become organized is to create a balance sheet for yourself. Write down your income and write down all of your expenses.
This will make it much more clear and concise on where to make pivots and changes in your life. Doing this will make it easier to see if you’re spending too much on things you don’t need, along with the necessities such as travel for work, car/health insurance, and food.
You need to take control of your financial life. You can’t rely on advice from others, no one knows your situation better than you. It can be difficult to makes changes, but they are often necessary to improve your life.
The craziest thing in the world is doing the same thing over and over again but expecting different results. If you want change then you need to change.
Don’t be afraid to dive into some personal finance literature as well. Robert Kiyosaki’s book Rich Dad Poor Dad is a great place to start for beginners.
It’s crazy how people will spend $1000 on sneakers but won’t invest in the stock market, real estate, or crypto.
In order to have a better financial future and one day become financially independent, then you have to invest in assets that will grow over time.
A lot of people think that investing in the stock market and real estate is only for wealthy people, but that is not the case. In fact, most of these wealthy people obtained their wealth by investing in these exact assets when they didn’t have much.
One day you’re going to be an old man and wish you had invested money when you were younger. However, if you start investing early this can all be avoided and you can retire with a nice stack of cash.
The earlier you start investing the better. Investing early will allow your money to grow more over time and set you up for a nice relaxing retirement.
If your company offers a 401K match, max that out. That is basically getting free money from your company.
If you qualify to open a ROTH IRA max that out as well. You have to pay yourself first in order to become financially independent and investing in compounds stocks is one of the best ways to do it.
You may be tempted to buy an expensive watch or finance a fancy car, but it is essential that you think of your financial future first.
Along with this, make sure you have an emergency fund set up. Some experts recommend that you have at least 6 months of expenses stored away in an account.
As we all know unexpected things happen in life, but if you are prepared then you won’t be as stressed when something bad does happen.
Saving and investing in your future will help you become financially independent.
Attack and Avoid Bad Debt
One of the most important financial tips is to avoid bad debt.
Borrowing money isn’t necessarily a bad thing and not all debt is bad, however, a lot of people do borrow money that eventually ends up becoming a burden on their financial success.
Anything with a high interest rate is usually bad, so avoid things with high interest like car loans, personal loans, and credit cards.
As mentioned earlier, too many people buy things they don’t need with high interest credit cards. This interest will continually build up and eventually leave you in a never ending cycle of bad debt.
Make sure you are paying your monthly balance on time, and keep track of that spending.
Along with this, student loan debt has become a financial burden for many young men as well. A lot of young people do not even know how much student debt they have.
If you need help with student loans, check out the Student Loan Cheat Code.
Now, if you have racked up a lot of bad debt, you need to develop a strategy to start paying it down. I advise using the debt avalanche. Organize your debts starting with the highest interest rates and start attacking them.
It may be a stressful process, but sooner or later you are going to have to face your problems, and the sooner the better.
You wan’t to be able to use your money on investments, not stupid bad debt.
Keep Credit Score High
Your credit score is very important when it comes to having financial success.
Your credit score has a direct influence on the most important things in adulthood.
Whether it is financing a car, applying for a mortgage, or trying to secure an apartment, your credit score is going to impact those decisions.
If a bank or private lender sees you have a bad credit score, they most likely won’t be willing to loan you the money. If they do decide to provide you with financing, they usually will attach it with a high interest rate.
Now using a credit card isn’t necessarily a bad thing. You can actually build a good credit score by using one, so just make sure you are using it wisely.
Use it for reoccurring expenses, such as car insurance or a cell phone bill and avoid using it on unnessecary things.
Make sure you pay it on time every month to build up a nice credit history. This will assist you when it comes to getting financing for bigger purchases.
Financial Tips for Young Men
These financial tips are very simple, but they can have a dramatic impact on your life.
In order to improve your situation, you are going to have to make some changes.
You are the only one who is responsible for your happiness and well-being, so make sure you take care of yourself first.