1. Don’t be penny-wise dollar foolish

Sometimes, it’s worth paying a little extra for durable and comfortable products or services- it could be in the form of investing in solid pair of shoes than buy a cheap one every few months #truestory or knowing your capacity and outsource something that is not quite worth your time.

Saving a penny in the short term may lead to undesirable consequences and experiences that could have been avoided. Remember, it’s about finding the right balance between cost and quality.

2. Spend on experiences, not material

When it comes to spending your hard-earned money, prioritise experiences over material possessions. The joy and fulfilment derived from experiences tend to last longer and create lasting memories. So go ahead and treat yourself to that concert, travel adventure, or a new skill you’ve been eyeing (of course in moderation).

These are truly thing money or time can’t replace.

3. Manage expenses not track

You’ll see many finance blogs or content creators tell you the importance of tracking but really, it’s the managing that is crucial. Tracking expenses is good to help you understand the details of where you spend your money. However, being too strict with tracking can induce unnecessary stress and can be discouraging at times when you fail to track.

Instead, take a proactive approach by carefully examining your expenses, either by looking through your bank statement or transactions to get a sense of where your money is flowing. Ensure that your spending is aligned with your values, and goals so that you can prevent lifestyle creep from taking control of your finances.

However, if you feel like your finances are becoming overwhelming, tracking your expenses can be a helpful tool to gain clarity and make necessary adjustments.

4. A good practice: Separate Savings from your expenses account

Separating your savings from your everyday expenses is a smart move. Something we often mention in Adulting session or with peeps new to managing their finances, open two bank accounts and designate one specifically for savings.
Upon getting your allowance or income, move your savings out to another account (just put a standing order, automate that!) By keeping your savings separate, you’ll have a clearer view of your available funds and avoid the false sense of wealth that comes from having too much money in your expense account.

5. Settle your basic insurance early

Taking care of your basic insurance needs early on is a wise financial decision. You’re going to need it anyway so go understand it and get it while you’re young and healthy while locking in coverage at a more affordable recurring price. We’re talking about the medical insurance by the way! This step protects your financial plan from unexpected medical expenses and provides peace of mind.

6. Never. stop. learning!

Remember, learning is a lifelong journey. Don’t think of education as something that ends after graduation. Embrace a growth mindset and continuously seek knowledge and new skills. It’s this willingness to learn and adapt that will help you navigate the ever-changing landscape of your career and personal life.
Always stay curious and find out more about whatever pique your interest, apply this to every aspect of your life. Google is your best friend and you’re your only limit.

7. Focus on building your earning capacity

In the early stages of your career, focus on building your earning capacity rather than solely prioritising investments. Your earning capacity serves as the foundation for future investments. We cant emphasise this enough! While it’s essential to understand how investing works, it’s okay to take a more passive approach initially. As you build your savings, you’ll have the opportunity to explore different investment options to supplement your income.

Even if you’re the best at investing, with a $2k income there’s little leeway for much investing and working towards goals after your basic needs. Compare that with someone who is earning a good comfy $5k, thats a recurring monthly income too.

and finally,

Photo by Sage Friedman on Unsplash

8. Imagine your rich successful life

Lastly, take the time to envision your rich life. Identify the things that truly bring you happiness and allocate your money accordingly. Knowing where to spend your money to maximise your personal satisfaction will serve as a powerful motivator to stick to your financial plan and make intentional choices.

Conclusion

Navigating the realm of adult money and responsibilities can be overwhelming at first. However, it’s important to approach this journey with a sense of fun, excitement, and the understanding that challenges are part of the process. Instead of getting caught up in every small detail, focus on taking small, manageable steps forward. As time passes, you’ll be pleasantly surprised to see how far you’ve come and how much you’ve accomplished. Embrace the journey and remember to enjoy the ride along the way. Keep going, and you’ll reach new heights you never thought possible! 😊