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It is common to find young adults with huge debts. The main reason for this is their lack of discipline in financial and budget matters. Another reason is indiscriminate use of credit cars and failure to make payments. By not adhering to budgets and not living within their limits they are setting themselves for financial disaster. In fact the number of young insolvent and bankrupt individuals has gone up in recent years. To prevent such problems and get out of debt, some money management tips have been mentioned below.
– Avoid getting into credit card debt
Paying your credit card bills may be one of your most common financial problems. If you don’t tackle your credit card debt in time, it will kill any savings plan that you might have. Credit cards should be used sparingly. For household purchases, eating in restaurants, shopping try to make payments in money. Pay your credit card debts in time to avoid paying huge interests. The faster you realize that credit cards are a trap, the faster you will come to terms with your money saving goals.
– Where you can do without a new product, buy used A young adult should be able to do with less pricy and used products because it may mean a lot of savings. People who are considering buying furniture, a car should think about getting them secondhand. If you like to invest in clothes, find factory outlets and sales from where you can buy your dress at a much lesser cost compared to from a company showroom.
– Start investing in a retirement plan as soon as you can
In these turbulent times, you cannot depend on the economy to give you employment always. Start investing in a retirement plan as soon as you can. Start now and you will be amazed at the amount you will end up saving in a few years.
– Invest in an emergency account
It it important to set up an investment account, so that you are prepared for contingencies, like a recession, a death or a setback in your career. Make sure yet aside enough money every month, into this account. This account should be used only in case of an emergency like an accident or ill health. If you are planning to start a business you can also use this money.
– Saving account
You may already have a savings bank account. Rather than letting your money sit idly in your locker or drawer, deposit your money in the the saving account. Over time, you will end up saving quite a bit of money. If your spouse or parents are living abroad, you can consider sending money abroad to them, so that they can make savings on your behalf.
– Earn some more
If you have time to spare, try to find some extra source of income with which you can pay off your bills or household expenses. If you are knowledgeable on certain subjects, use your skill to write article on the net for some extra money. You can also try selling goods on eBay, babysitting, walking dogs or anything else that will bring in some extra money.
Grace is a financial expert associated with Send Money, a money transfer company. On the website you can find the latest quotes on various currencies. You can also send money to different countries and use the money converter.