A Few Financial And Life Tips For Our Youth - Nimi Akinkugbe

One of the most important skills you need throughout your life is financial knowledge. Unfortunately, personal finance is not in the school curriculum. 

This leaves many young adults without any knowledge about how best to manage money or stay out of debt. Here are some tips to set you well on the path to financial security:

Have a plan Few good things happen by accident. Your future is not something that just happens; it is something that you create. If you let life just happen to you, you will end up with whatever comes your way. By having a plan and being focused, you have a better chance of achieving your goals. Write down your short, medium, and long-term goals.

Create a budget

The concept of budgeting is often seen as boring, but it really is the most effective way of keeping track of your expenses. A budget helps you see exactly where your money is going. Start by adding up the essentials – transportation, food, and other important expenses. 

There is the tendency to eat out often, pick up take away meals, or to overspend on clothes and a lifestyle that you perhaps cannot afford just yet. This is the time to commit to save and invest for the future. The key is to live below your means and spend less than you earn. 

Keep your debt under control

Use debt cautiously. It is better to borrow for things that have lasting value, such as your personal development and education, or to buy property, rather than for clothes, gadgets, and your lifestyle. If you are in debt, focus on paying off or at least reducing the debt with the highest interest first. 

Building a solid credit history from your youth is important. Your employer, family, and friends might lend you money from time to time. Be meticulous with repayment and don’t abuse this trust. 

It could be very important when you need to borrow more significantly for your business or other needs in the future. Borrowing is about character and credibility. Don’t abuse the privilege.

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