When you are young it may seem as if financial worries are the least of concerns. Perhaps you are worried most about making a name for yourself in a good job, finding a spouse, or having a great looking car. But it is when you are young that the start of your financial future really begins to take shape. Essentially, the younger you are when you start saving, the more time you have to save more money.
Ideally, when you are young your financial priorities should involve two specific goals: savings and preventing debt.
Savings
Young people today face a much tougher job market than those of years past. They will need to learn how to make and manage their money from the start. They also need to learn the importance of benefits from a job, including health insurance and a retirement plan. Too often the young will be quick to jump into a seemingly great job without a concern for such benefits. If you are not contributing to a retirement fund from the start, you are losing an opportunity to sock away more cash for a longer period of time. Also, it is important the young learn the importance of paying themselves first. For each paycheck earned, a percentage should be immediately put into savings and left untouched. As years pass and savings accrues, there will be more opportunities in the future and less financial stressors.
Debt
Ideally, it is best for a young person to learn early how important it is to spend less than you earn. Getting buried under debt at a young age sets you up for a struggle for years to come. If you are still young and single, it is important to focus on paying off debts fully as fast as possible. Student loans and credit card debt can plague a young person for many years to come and if you start off on the right financial foot, you can work for many years to save your money instead of working solely to pay off bills. Having a healthy savings account allows for more opportunities in the job market. You can be more picky about what positions you take instead of being forced to work at any job just to make an income.
While the economy has thrown many generations for a loop, it is important for the young and single individuals to prioritize their finances while still young to prevent financial struggle in the future.
Student loans and credit card debt can plague a young person for many years to come and if you start off on the right financial foot, you can work for many years to save your money instead of working solely to pay off bills. Having a healthy savings account allows for more opportunities in the job market. You can be more picky about what positions you take instead of being forced to work at any job just to make an income.