Money Lessons for the Young Adults

Personal finance isn’t really taught at school and stepping into the “real world” requires you to be good at it in order live comfortably and prosper in life.  Don’t worry though; it’s not as hard as you think it is.

Here are my 5 tips to get you started on the right path.

1. Set a positive mind set.

How you think about money affects the future of your finances.  Don’t focus on what you lack.  Instead, set your mind towards financial success and it will naturally come through.  I believe in the Law of Attraction which is a theory -“like attracts like”.  So think about having more money to have more money.  Use affirmations to replace self-limiting attitudes.  It has to start with you, keep that in mind.

2. Set a financial goal.

If you want to reach financial success, it is very important to set financial goals.  Make sure your goals are specific, measurable, attainable, realistic and timely (SMART method) and must be written down for you to visualize what you want in life as well as a way to motivate you to achieve those goals.

3. Create a budget.

Every month, you should create a list of your income and expenses.  This way, you get to see the money coming in and going month on a monthly basis and help you stay on track.  It is very important to see the flow of your money to make sure that you don’t overspend and fall into a financial failure.

4. Start saving up for the future.

Whether it’s for an emergency fund or retirement, having money set aside for the future is really important and something that you should start ASAP.  To make the most out of it, put it in a high-interest savings account, a time deposit or money market account.  You’ll thank yourself later.

5. Understand your taxes.

By law, every individual and business must file an income tax return every year.  Income tax is the source of funds that the government uses to fund and serve the public.  Make an effort to carefully understand how taxes work before the next tax season comes.

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