Being a young adult is a time to be independent, and that also entails financial independence. When young, you may have studied personal finance in school and your experience may be limited. But in the real world, things can get complicated. What we learn may not necessarily translate easily to reality. Here are 8 effective and practical finance tips for young adults.
We’ve all heard “save more, spend less” for a healthy wallet. There are obvious things that drain our wallets like rent or vacation, and then there are the little expenses. If the little expenses frequently go unnoticed, they will eventually cause a surprise when you check your bank balance.
Source: Quickmeme Your net worth refers to the difference between your assets and liabilities. It provides a big picture view of your current financial situation - think of it as a financial report card that allows you to evaluate your current financial health, and helps you figure out what you need to do to reach your financial goals.
Your financial health refers to the state of your finances - it’s an overall look at how well-prepared you are for unexpected financial emergencies. Like your physical health, your financial health is essential for a happy and successful life. And just like how you shouldn’t ignore symptoms of a potential illness, you shouldn’t ignore symptoms of poor financial health. These are 4 of the most common red flags to look out for: