Whether you are a recent graduate or a young individual who is looking to become more financially independent, there is a lot you can be doing when it comes to better managing your finances.
While there is a variety of opportunities to find your way out of tricky money situations than our parents or grandparents would have had (take for example short term loans etc.) it’s still important we become self-sufficient. Improving financial awareness and budgeting can help to build up some form of savings without relying on emergency help from external sources.
Some of the following tips can be learnt through a process of trial and error, however to save you time and money, let us help you get a head start on your journey to achieving financial independence.
Track your money and investments
Regardless of how much income you may have, it is important to always be able to track all aspects of your income, from account balances to savings and even investments (should you have any). Why not explore the most popular apps and smartphone features that will encourage you to take a closer look at where your money is going which will also encourage you to track your spending habits.
Don’t wait around
Many millennials fall into the trap of waiting to find their perfect job, sometimes your perfect job doesn’t come to you until later in life. Keep in mind that a vast number of life’s opportunities come from personal connections. Networking and finding suitable ways to improve your experience will make you better equipped to land the job – and salary – that you want. A regular job may not be for everyone. If you have a great idea, you could try starting a small businesses of your own. You could also try a small side gig, not only will this give you a taste of being your own boss and how to deal with clients, but it could also help supplement your income.
Cut down on your expenses
It’s no surprise to learn that the price of houses is on the rise, which is why money management experts tend to suggest that you live rent-free for as long as possible to allow for faster buying opportunities in the future.
Some things you can do in the meantime while you are saving up for your future home are to cut down on unnecessary expenses and this can be anything from food to commuting costs etc. There are a variety of apps and websites available that support in finding you deals and discounts in local areas, so be sure to use these to save money, check out our selected five apps to help you save money. Being more cautious with where your money is going will allow you to make small savings each month which will all come in handy when it comes to buying that dream house!
Commit to saving a chunk of your pay check
Getting into the habit of saving money if often the hardest first steps to make but once you have the skill mastered, better managing your money becomes a breeze. Through committing to consistently save between 20% and 25% of your pay check, you will soon be well on your way to building up a substantial reserve of cash for emergency situations and important future purchases.
Start investing as soon as possible
Lots of people are scared of investing money as they feel that they are not in the best position to do so until they have paid down their debts. Regardless of whether you are still in the process of paying off your student loan or any other debt, you should be looking towards backing an investment strategy that best resonates with your long term goals. Time is the greatest asset of any investment, so the earlier you get to investing, the better and more significant your gains could be. There are many different types of investment opportunities, these can include shares, property, a business, ISAs and more. Remember, an investment as sound as it seems can still result in financial loss and there is no guarantee on return. So, it’s important to look at all your options and consider the risks too, especially if you are considering investing a significant amount of money.
Generic advice is not a service regulated by the Financial Conduct Authority.