FC: What I Wish I Knew at 18
1: By: Arianna Seidl
2: Living within your means, basically spending less then you earn. Building long-term wealth through a regular savings and investment programs will both help you manage your money. Its important to realize each month what are necessities, and what you can hold off on. unfortunately people often overestimate how much they make, as a result they overspend on things. | Living within your means
3: Here are a few reasons people underestimate their spending: 1)they don't keep track of it, those small items can add up 2)they fail to take into consideration seasonal expenses (Christmas, property taxes, vacations) 3)they have no idea how expensive children and pets are 4)they fail to understand how much more expensive it is to own a home or rent an apartment 5)they consider credit card purchases as a free loan and forget about the finances charges
4: Using Credit Sparingly | What lures many people into debt problems is that they underestimate how much more things cost when they buy on credit and don't pay off the balance each month. Instead of using credit cards, use debit cards where it directly draws money from your bank account. this adds a measure of discipline to your payment habits
5: Try to save as much money as you can for furnishings, cars, and other items. | Problems often occur as soon as college students are bombarded by financial institutions to sign up for their credit card
6: Investing Early! | In order to achieve your long-term goals and maintain your lifestyle in retirement, you'll need to build financial wealth. To avoid living out of your retirement assets you'll need to develop an investment program that will provided sufficient assets for your retirement. While investing some things to consider are how much you invest, the rate of return on your investments, and the time period over which you are investing.
7: one of the best ways to invest in saving money for the future is to take money from your bank on a monthly basis and hold it into a diversified investment program. this way you wont be tempted to spend this money that can easily be saved. However, investing early in your life can impact your wealth significantly. This should be a top priority for a young person with big plans for the future.