Everyone around you says that you’re an aspiring student with the bright future ahead.
That makes you feel invincible, but the studies are coming to an end, your 30s are drawing near, and you’ll gonna have to start building that bright future if you’re gonna have one.
If you look at it objectively, you’re almost halfway to retirement, so it’s time to put those foolhardy 20s behind. The most important thing is to understand how finances and take control of them. That’s not such a tough thing to do if you have developed good financial habits. If you haven’t been taught these at home we’ve prepared a quick excursion through the financial lessons you’ll need to master.
Studies are Not a Make-Pretend Game
Every one of us remembers our studies as a part of our lives when we have had the most fun. Certainly, college parties are a partial reason for this feeling, but certainly not the most important one. What makes studies so attractive is that it’s like a gateway to the world of grownups but you’re still protected from the world.
It all feels like a make-pretend game, especially when we realize that we did some of the most childish things in this period. But the truth is that there is stuff that can have consequences if not taken seriously and one of them is your student loan. We all consider it as a pocket money that has fallen out of the sky and after the studies, most of us don’t navigate the repayments well.
If you underestimate these monthly payments over the time the interest will eat away up to one-fifth of your future annual salary. And this is still not the worst thing that can happen – if you plan to sail into entrepreneurial (startup) waters, unsolved loan issues can increase the risk of litigation. This is not the end of the world, but you’re gonna need an experienced litigation support professional to take care of it without further damage, and you could’ve avoided all that mess by simply educating yourself about student loans.
Rainy days are not just some empty words you hear your grandma and grandpa repeating, they can happen to anyone. And that rain doesn’t leave you wet – it leaves you broke. When you enter the world of business, especially when you start your own, you can never entirely predict what can happen.
That’s why one of the most important things for the health of your finances is setting up an emergency fund. It is a solution for ever-present unplanned life expenses that would otherwise lead to mortgages, auto loans, credit card and other types of debt. Your saving account doesn’t need to be stacked up – a thousand bucks are enough to keep your head above the water.
Of course, if you already have some debts you’ll have to set your goal a little higher – rainy days tend to raise the water level. You need to make sure you won’t spend your whole life paying off debt. But don’t let this frighten you – there are various methods to pay off debt, you just need to be fully aware of the situation.
Know Your Possibilities
After you’ve finished your studies you’ll probably hear people saying that possibilities ahead of you are endless. Well, that might be true in a poetic kind of way, but when it comes to finances your possibilities are limited by your budget. We don’t doubt that you’re aware you need to create a budget, but you also need to know how to do it properly.
It is not the pint just to be aware where your money goes, but to make that decision yourself. Of course, there are always regular expenses, and the trick is to adjust your spending habit to them. Once you’ve created a budget you need to stick to it. We’re not saying you need to live far beyond your means, but you shouldn’t spend your whole paycheck, either. It’s not your pocket money anymore. If you spend more than you earn you’ll never be able to put your financial situation together.
Grow Up – The Conclusion
If you look at all the things written above you’ll realize they’re nothing special – just the part of growing up and taking responsibilities. As you’ve been growing older you needed to learn how to clean, cook, and make basic repairs by yourself. Now you need to learn how to take care of your finances, and that’s all.
Everyone can get serious and aware of its possibilities once he defines his goals. So first you need to sit down and think about them. Write them down if it makes it easier. It’s time to decide what you want to do with your life, besides being a firemen or a rock star.
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- Herbert B. Mayo
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