There’s almost nothing like being young, free and independent we love it! But that being said, all of us are in some way directed by the life we live, and the circumstances we keep! Rach has just moved out of her flat in London so has been left with a bigger disposable income which is great! Renting really has taught her how to budget, which is a great skill to have.
When you are young and have so much freedom all you want to do is explore and spend spend spend (we definitely did this when we first left uni)! There definitely comes a time though when you want to ensure that you are set yourself up for your future. You want to be able to buy a flat or go on some adventures.
Thankfully, this is not as terrible or as boring an idea as it sounds. Good practice can often be enjoyable. Here are a few attitudes you may wish to consider.
Saving Your Income
Saving at least 10% of your income can help for many reasons we know it can be tough but even just £20 a month is something. Building up an emergency reserve of money in a savings account that sits and grows on your interest can be worthwhile, as it can help you out with that car payment, or if you need to buy a new laptop, or travel the world and go on amazing holidays. A little frugality here and there can build up to big gains and saving is a part of that.
Keeping It Frugal
Of course, we’re in no way going to suggest that young people have all of the money in the world and they should just ‘stop spending money on avocado toast’ in order to stay wealthy 😂 can you imagine a life without avocado on toast lol!
In fact, you’re likely working hard at a job, putting yourself through studies, or taking a low-income position to get some experience.
You’re doing all you can. That being said, to the extent that you can, being frugal is always an important thing to learn. Note, being frugal is not being ‘tight’ with your money. Simply learning to shop off-brand, to pick your indulgences, to save up before purchasing something instead of abusing credit, this can have a real positive effect on your financial future – no matter what your bank balance looks like.
Acceptable loans and credit
It’s important to consider that when young, it’s unlikely that you have many credit obligations. This is a perfect time to consider building your credit provided you have a stable job. Gaining a credit card and making purchases you can afford and immediately paying back the balance can raise your credit rating, because it shows you are willing to immediately clear the balance. Starting relatively early will teach you to keep good credit habits, and will put you in a stronger position when you hope to gain a loan later on. It may also help you apply a set of guarantor loans from Buddy Loans provided you have someone you trust to pay request it.
With this advice, you’re certain to be as financially responsible as you can be.
