Managing your Personal Finance as a Young Adult

There are quite a number of subjects I wish I was taught in school. At the very top of the list is financial literacy.

How do I manage my finances when I start to make money? How do tailor a lifestyle to suit my income? What proactive steps should I take to put myself in a good place for when I start to work and when I retire eventually?

Unfortunately, most- if not all- of these things aren’t taught in school. A lot of our tutors never learnt got this education themselves. They never learnt these important lessons and you just have to learn them through your own mistakes and your careful observation of the world and others. From experience, this is not always the best way to learn about finance. But well, it is what it’s been!

To prevent this pitiable financial illiteracy that throws a lot of young adults into midlife crisis a little too early, I have decided to share you a few things about your personal finance and how to manage it.

Your Personal Finance

Personal Finance is just the fancy term used to describe all of those things that directly or indirectly relate to your income and spending (maybe it’s not so fancy after all.)

Say you earn some £500 within the week. How do you spend it? What are the best financial decisions you can make? What are the worst options you can consider? How do you manage this income? All these things put how together make up your personal finance.

For clarity’s sake, let’s just say it involves the following:

  • Insurance
  • Budgeting
  • Mortgages
  • Investments
  • Retirement Plans
  • Taxes and estate planning

What are the objectives of personal finance?

Personal finance is all about you meeting your financial goals- whether they be short term (sustenance and basic expense objectives) or long term (retirement plans and financial stability).

Is there a way to do it right?

Absolutely!

Regardless of how much you earn, you can create a system that works for you- one that serves to meet all of your financial needs and has an outlook for the future of your dream.

It all begins with embracing the right personal finance strategies that prevent wasteful spending and are focused on moving you closer and closer to your goals by the day.

Want to know more about your personal finance and these strategies you can employ to breach the gap better your financial expectations and reality, check out our subsequent posts. These posts will teach you everything you need to know about your personal finance. You don’t want to miss!

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