Finance For Young Adults
If you are still in college or a recent graduate you will soon realize that school does not teach you about finance, taxes, buying houses, building credit, or any of the essential information you need to transition to the real world.
One of the simplest ways to get started on building credit is to get a credit card. Discover is a great option for students who have no previous credit line. The key to building good credit is keeping your credit utilization below 30% and always making your payments on time. As a student you might find it difficult balancing things on your plate so try and set reminders because making a couple missed payments can damage your credit significantly.
While you are still young and healthy, you should also look into obtaining life insurance. Payments usually run around 10 to 30 dollars a month depending on how old you are and what plan you choose. It is much cheaper to get life insurance at a young age than when you are older and payments can cost hundreds of dollars a month. The sooner you start the better.
Learning about all the tax credits available to you is important. Taxes take a majority of the money you make and if you can find ways to work around paying some taxes it will help you significantly. Tax-Free Wealth by Tom Wheelwright is a great beginners book on learning about how to lower your taxes.
Starting an emergency fund is key to avoiding taking out high-interest loans during unprecedented times. Saving a couple of dollars per week can make a drastic difference when you are hit with a large unexpected payment. Make sure to keep it in a separate and safe place where you will not be tempted to take it out no matter what.
No matter what age you are, incorporating these tips into your life will make a drastic change in your future and you will thank yourself for doing so.