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Finance Tips For A Young Adult

Being a young adult in today’s era is much more difficult than it used to be. Our parents were able to get onto the property market from a young age and University fees weren’t as much as they are now. Nevertheless there is a lot more help out there for today’s generation. They just need to know where to go to find it.

If you have left college or university the big world can be scary especially when you have rent and bills to pay. For those who live in the UK rent is very expensive in the city centre and on the outskirts. It seems that mortgages and rent have all increased significantly however salaries haven’t. Nevertheless there are a few tips that you can follow to keep you out of financial trouble.

Try To Always Pay With Cash

The golden rule for a young adult is to always pay with cash as in money from your bank account and not with a credit card. Many young adults lack responsibility and decide to pay for everything with their credit cards. It can not only harm your credit score but you may not be able to pay off. That will then mean you will need to pay interest on your credit card which can lead to debt. If you want to improve your credit score we advise you to only use your credit card for emergencies.

Educate Yourself On The Financial World

Another golden rule is to educate yourself on the financial world. One of the biggest problems with schools today is that they don’t teach life skills especially with personal finances. That is why many young people are in debt and don’t know how to spend their money.

The internet is a great place to learn about financial tips. Furthermore there are many books which you can read that will give you essential life tips for managing personal finances. As we all know books are very educational and they can help you a lot in future.

Learn How To Master The Skill Of Budgeting

Budgeting is something you will have to do in the early stages of your career. You won’t be earning a lot of money at the beginning so you need to have your priorities in check. Again there are many personal finance guides and budgeting books to give you all of the financial tips that you need.

There are apps which you can download on your phone to do this. Two apps which are very common in the UK are Emma and Plum. Furthermore you can also invest your money with these apps. It is great for setting yourself up for the future.

What Happens If You Get Into Financial Trouble?

In some cases you can end up in financial trouble. If that happens to you then you don’t need to worry too much. There are many ways where you can deal with your debt. Depending on how much debt you have built up you speak to an IVA advisor to see if you can reduce your debt and the monthly payments.

IVAs are something you shouldn’t be afraid of. Many people have an IVA to deal with their financial problems. All you need to do is put in the amount of debt you owe in an IVA calculator. From here you can see how much you can reduce your debt and calculate your new monthly payments.