Money Advice to My 21-Year-Old Self

Here are the 5 most important money advice I wish I was told when I was 21 years old.

Being in your early 20’s means you’re on your way to full-on ‘adulting’. And while most of you may think it’s way too early to worry about finances and your future, there really is no better time to start than right now. At least that’s what I wish someone told me back when I was 21 too!

So, allow me to share with you money advice — that’s otherwise basic — that can change your life and allow you achieve financial freedom easier and at an earlier time.

Start Developing Habits

The first and most basic step is developing smart and doable spending and saving habits. Even if most of you at this age still depend on allowance from your parents, you still have the power to manage what little money you have with you. Discipline yourself to deliberate and assess your needs and wants whenever you find yourself spending. It’s also important to try to save up even just around P50 a day — with this, you can start small and before you know it, you’re already setting aside as big as P1000 a day.

Open a Savings Account

So where should the money you’re setting aside go to? It’s time you open and start your own savings account! With Simple Savings, ensuring your money is saved for a rainy day is made easier, faster, and simpler. All you need to do is to fill out a form, present a valid ID, and deposit as low as P100.

Now you’re just 3 steps from building credit and being a pro at saving!

Assess your Goals

Identify whether what you’re aiming for are short-term goals or long-term ones. To make it easier for you, things you’d like to achieve within five years or less are considered short-term so these may include your own car , your own condominium , and even a few high-end gadgets. On the other hand, your retirement and certain travel goals may fall under long-term.

Determine the approximate amount you’ll need to meet each and every single goal so you can manage yourself and your pace. This way, you won’t feel too pressured and won’t end up depriving yourself. Because at the end of the day, we’re doing this to live our best lives.

Learn How to Budget

The key here is to always live within your means. But more than that, it’s the discipline of preparing for the future, possible emergencies, and more important things you may want to spend on down the road. Don’t worry, budgeting is highly objective so make sure your budget plan caters to your specific needs and lifestyle.

Don’t try too hard to afford a certain kind of lifestyle or even force yourself to stop spending altogether. Just go at your pace and take baby steps if needed.

Research on Personal Finance

To manage your money, you have to know how the world of money works. You don’t have to be a Math or even an Accounting Major to learn all about this. Self-Help Personal Finance books are readily available in bookstores nationwide, and it won’t take a lot to pick up a book and start educating yourself.

Or you can keep reading up on articles like this to lead you on the right track, and to keep you there.

Remember, it’s important to know what you want and how you want to do things to make this truly successful. Like I said, go at your own pace and think of these as guidelines instead of rules so you can continue to live a fun and financially independent life as you go.