The Top 5 Ultimate Financial Tips for Young Adults
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Need some financial tips as a young adult? Well, you’re in luck! Financial Tips for Young Adults is kinda my thing…
In this blog post, I will be giving you the best tips and tricks for your financial health and some resources to help you along the way!
As a STEM girl working towards becoming an Actuary, I have learned so much about personal and corporate finances that can help you become confident in your financial future.
This post is all about Financial Tips for Young Adults
Financial Planning for Young Adults PDF
I have made a helpful PDF of questions you should ask yourself when financial planning. This is a free PDF that you are free to use and enjoy to help get you into the right mindset, set appropriate goals for your future, and how to achieve them.
Financial Literacy For Young Adults
@thebadalsorises Replying to @Caroline Archer I love wealthfront for people with ADHD! #adhdbudgeting ♬ original sound – Caroline Archer
Finance is a HUGE topic with many varying opinions and advice. There are so many resources online and advice from your boomer parents/grandparents (and honestly strangers) that it can be hard to decide what is best for you and your family. This makes a slippery slope of ignoring finances or learning about them so that you don’t make any progress until you feel like it is too late.
One of the best investments you can make into your financial health is looking for a CFP and asking for help. The advice I give here is just for entertainment and for little tips you can incorporate. This is an overview that would help a wide range of people, but a CFP could look at your life and finances and come up with a much better plan for your life!
Financial Tips For Young Adults:
1. Automate Everything
Have a part of your paycheck go automatically to a retirement account, savings, or both. Automate all of your bills so they come out after your savings and retirement (pay yourself first). These steps will help you know how much money you really have to spend on fun things.
If you have credit card debt, like most of us, pay that off first before you even touch the rest of your money.
2. Learn More About Finances
Learn as much as you can about finances. Seriously. Spend as much time as possible reading books and listening to podcasts to learn about taxes and growing wealth, but be careful about what advice you listen to. Try to learn from a variety of people and only take advice from those who are qualified to give it. Don’t take this advice from me, especially if you haven’t taken the time to learn about other opinions and strategies.
Take time and notes on different strategies and how they would look in your life. Be careful with what investments you make. It is better to play it safe for a little while unless you become extremely familiar with the market and with certain companies. Even then, it is smart to invest in ETFs or Index Funds to diversify your portfolio and minimize risk.
Here are some of the best books and podcasts about money that will help you continue to grow your finances.
3. Have Multiple Accounts
Wealthfront has a great cash account and Roth IRA option that can help you manually separate your expenses so your cash is liquid in your accounts and working for you in the Roth IRA.
Have an account for all your major financial goals like retirement, downpayment for a house, and emergency fund. These should be along with your regular checking. I keep my money in the Wealthfront cash account because it has 4.55% apy, and I’ve never had an issue taking money out.
4. Have as Many Income Streams As You Can
Some ways to do this are dividends on your investments that get automatically reinvested, online side hustles like writing on Medium, and an at-home side hustle like DoorDash. These are things that almost anyone can do with time management and motivation.
Having multiple income streams will protect you from financial hardships or even unknown expenses you haven’t planned for. Try to save as much of this extra income, so then it doesn’t mean you’re getting a salary increase but more of an increase in long-term savings.
5. Be Open About Your Wage
Talk to your coworkers about your wages. It is against the law for your employer to stop you from talking about your wages or to retaliate against you for doing so.
By being open about your wages, you’ll ensure there is no inherent bias coming into play in your workplace. Stand together with your coworkers if someone is getting paid unfairly, and hopefully, others will be able to help you in the future if that happens to you.
This post was all about financial tips for young adults.
If you want to have a stable financial future that includes security, then you will need to take these steps to ensure this will happen.
