Learning to manage your money while you’re young is an essential skill for everyone to learn. It can be fairly simple to set yourself up for financial success provided you follow some financial advice. Following the advice won’t be easy, but the steps themselves are. Negotiate your salary When you first start working, try to convince your employer to pay you more money. Show them that you have the skills they’re looking for and the knowledge to complete the requirements of the position.  This is important because your first salary will dictate all of the money you earn in the future. “You should try to negotiate your salary for a few reasons,” says Ramit Sethi, author of I Will Teach You to Be Rich. “The first is that a single $5,000 raise in your 20s, if you properly invest it, can be worth more than a million over the course of your career.  And that’s just one raise. People who negotiate tend to negotiate over and over again.” Upskill yourself By learning more, you’ll have more to offer to your employer and you’ll be able to ask for that salary increase. It’s always beneficial for workers to have solid computer skills and writing experience. In addition, it could serve you well to have good phone and email etiquette. If you’re serious about moving quickly up the career ladder, you could consider a leadership skills training course which will teach you what you need to know about teams and team management. Pay off your debt As soon as you graduate, find out what debts, if any, you have and make a plan to pay them off as quickly as possible. The longer you wait before paying these off, the more interest will accrue. Rather, get a handle on debts as soon as you can. Save more and spend less This is the most simple but powerful rule of personal finance. As long as you’re spending less than you earn, you’ll eventually be able to build wealth and become financially successful. Of course, this can mean different things for different people. For some it may mean driving a flashy car or living in a big house. For others, it can mean having the financial independence to do what you want with your time, rather than being forced to work and earn a living. Have an emergency savings fund An emergency fund will enable you to deal with whatever life throws your way without having to go into debt or use your credit card. An emergency fund could be three months’ or two years’ worth of expenses, but it’s important you’re comfortable with the amount you’ve saved. Take advantage of compound interest It’s important that you start saving for your future while you’re young to fully take advantage of compound interest. Simply put, compound interest is interest on interest or the result of reinvesting interest. By taking advantage of compound interest, your savings will have more time and power to grow. Image: Pexels

Comments

comments