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The New Adult's Guide to Securing a Financial Future

Finances play a critical role in day-to-day living. To ensure that we will have an easy life later, we should secure them while we are still young.

The New Adult's Guide to Securing a Financial Future

The following topics will be discussed in this post.

Adulthood-stepping into this brand-new chapter can be thrilling and anxiety-inducing at the same time. 

How can it not be? Becoming an adult not only entails more freedom with our choices but also means encountering numerous changes in every aspect of our lives. 

Most notable are those in the responsibilities that we need to take on as we grow older.

A prime example of such responsibility has to do with how we manage our money. Now that we oversee our well-being, it's also up to us to make decisions that won't end up compromising our futures. 

So here are a few financial pointers that can help us in our 20s.

Consider Cash Payments

Cashless payments are all the rage these days. Credit cards, debit cards, online payment systems-these methods make a purchase more seamless than it should be. 

It has reached a point where those who use them regularly may be having difficulty keeping track of their spending.

That is why it's encouraged that we pay the old-fashioned way as much as possible-with actual bills. 

Cash Payments

Going to the ATM to withdraw money may be an added step, but it will help us take note of how much money is leaving our accounts and if it is balanced with how much is going in.

Not only that but paying with cash also leads us to maintain a mindset where we should only spend the money that we have. 

Something that a credit card cannot do, given how it allows us to purchase things ahead of time before making the actual payments later.

Apply for Insurance

As adults, we need to take the initiative when it comes to investing in things that matter. It does not have to be the stock market or real estate. 

Another form of investment we can take up is insurance, particularly life or health insurance plans.

Apply for Insurance

At the prime of our lives, these may seem insignificant. However, we need to take into consideration that illnesses and accidents can come out of nowhere. 

Should there be a time when we find ourselves struggling with our physical well-being, it's good to have a health plan that can take the brunt of the costs as we focus on getting better.

Save Up for a Rainy Day

Many of us prefer to live in the "now." While there is not anything wrong in doing so, we should not let it reach a point where we forget about tomorrow.

In this sense, it will do us some good to allot a portion of our post-tax income to our savings. Unsure of how much to save? 

Beginners in budgeting are usually recommended the 50-30-20 budget rule. Following this rule means we get to spend 50 percent of our earnings on our needs, while 30 percent goes to our wants. 

Save up for a rainy day

The remaining 20 percent then goes to our savings, which we can use to fulfill any financial goals that we may have. Some people tie in this 20 percent with their goal of securing a health insurance plan.

There is no right time to start taking great care when handling our finances. It is simply the best to do so as soon as possible since this is how we can secure a sound future. 

After all, try as we might to deny it, money plays a critical role in every single aspect of our lives-from simple joys to necessities like housing and food. 

There is nothing wrong with having an ample amount of it.

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Darryl SHELTON
Darryl SHELTONMember since
Jan 17, 2018
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