In this article you will learn 5 strategies to learn how to start your financial life on the right foot.
Adolescence is one of the most important stages of our lives. In themselves, they are essential and decisive years for your future, for your financial life. Your decisions and experiences at this stage will mark the following years.
Being teenagers we want to grow up and when we reach 30 we would give everything to be young again. Why? Very simple, we would like to make better decisions and do things that we stop doing.
After all, we would like to be able to rewrite a different story of our lives, from the experience we have today.
If you want to know how to start financial life that allows you to have stability in the future; keep in mind the following recommendations.
Remember that you are lucky and you are in a perfect stage to dream, plan, make mistakes, learn and build a great future.
Also read: 5 financial decisions you will regret in the future.
How to start financial life to have stability in the future.
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Don’t run away from your parents’ house.
Most young people want to run out of their parents’ house as soon as possible, since having their own space and freedom to do what they please sounds very tempting.
However, and despite the fact that this does not sound very funny to many…. Stay at your parents’ house as long as you can.
Think wisely. The rent of a property or the payment of a mortgage loan is the largest monthly expense that an average individual has. This without counting on the services of electricity, water, internet, etc; or repairs that are never lacking.
Also read: 85 strategies to learn how to save money at home.
Keep in mind that the money you do not pay for rent will help you create a base that you can invest in the future. Maybe you can even invest in a property, instead of struggling monthly with rent.
However, to do this, you have to pay attention to mortgage rates and all the hidden fees involved.
This does not mean that you should live with your parents forever, it is just a strategy that will allow you to create a solid financial structure to make better decisions in the future.
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Keep in mind that marriage and children are very expensive.
There is no doubt that getting married and having a family is one of the most beautiful experiences of the human being. However, reaching that stage accompanied by financial stability will offer you a better quality of life; Not only you, but your children.
Marriages and children are very expensive, so it is necessary that you plan in advance both your professional and personal life. The best way to do this is by structuring your financial life.
Wait until you are in your thirties to start a family, when you are financially able to afford it comfortably.
If you’re in your 20s, you’ll have plenty of time to pay off student loans and plan for the future.
True love may have come into your life, but don’t worry. If it really is, you can wait and formalize the relationship on a more solid basis. Why rush?
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Rethink the way you spend your money.
Unfortunately, since we were children, our environment bombards us with the idea of spending, buying, wanting and desiring things that, after all, we don’t need.
We grow up with the need to pretend, to show others what we have and to compare ourselves to see who has more.
This urge to show off reaches its peak during youth, when we dream of spending money on a new car and expensive parties.
Here comes the third strategy. Control the way you spend your money.
Many young people begin to spend excessively when they get their first job and reach 30 full of debts and with little chance of saving or investing.
Also read: How to get out of debt and build a business of 20 million dollars.
Material possessions do not bring happiness. They also put your future financial planning at a very unstable point.
How you spend your money when you are young will determine how successful your financial life will be.
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Save, save and save a lot of money.
This is possibly the most used and least followed word when it comes to finances: SAVING.
You’ve probably heard it from your parents, but no one cares until it’s too late.
Your situation can change overnight. If you have today, tomorrow you may not. That’s what saving is all about, being prepared.
Start saving and investing as soon as possible. This will give you the opportunity to be more flexible with your contributions and invest better.
Use the power of compound interest, lean on the construction of an emergency fund and a budget.
You can also read the following articles:
What is compound interest and why it can make me a millionaire.
Emergency fund: What it is, why have it and how to create it.
How to make an easy and fast budget (Step by step guide)
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Create different sources of income.
Your youth is the best time to start thinking about creating different sources of income. That’s right, having extra income is what will give you stability in the future.
One of the biggest mistakes we make is to think that if we have a job, we are saved.
Relying on a single source of income is living on a tightrope that can be broken at any moment. Even more so, if you don’t have savings.
There are many profitable businesses that can start producing extra income. Like any business, generating results will take time and that is why you should start as soon as possible.
Some of these businesses can result in new ideas. And why not, in your own company.
In 10 years you will be grateful for having started today.
Conclusion.
Learning how to start financial life is not an easy job. However, you cannot allow it to become trial and error learning.
With the 5 strategies above, you can start on the right foot; without the need to lose large sums along the way.
We hope they will be of great help to you 🙂
And remember that if you are really interested in creating your own business, you can purchase our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
