There have been plenty of stats and infographics floating around that show that wage growth has been far behind the increase of property value. It paints a gloomy picture that younger professionals are struggling with their finances. Here are three golden financial rules to live by.
Know What You are Worth
This seems to be an obvious one, but there are a lot of people out there who wouldn’t even dare to engage in this conversation: make sure you are being paid what you are worth. And this is usually all down to you. Don’t expect your boss to ask you if you want a raise out of the blue, you will have to ask for it yourself.
Make yourself invaluable at work, be a positive factor for growth, and make a raise an offer your boss can’t deny. Getting paid what you deserve is usually the first step to take.
Save as Much as You Can
Warren Buffet famously said: “Do not save what is left after spending; instead, spend what is left after saving.” Those are words to live by. Try to save early on in life and as much as you can. That means you will need a clear idea of your expenditures and income and know you run a surplus each month. Some financial experts say that you will need at least 3 month’s worth of wages in an easy access savings account, and the remainder should be put away in a long term savings account, be it bonds or higher risk (and higher yield) investment accounts.
The key is compound interest that will increasingly be rewarding as money sits for 30 to 40 years. Saving can be very hard to start with, especially if your wages don’t allow for it (see the previous paragraph), but the early pains will pay itself back many times over in the future. For example, when you run into an emergency.
Ask for Help
If you are dealing with unexpected expenses, and you weren’t able to build up a decent buffer as described above, it’s the first time to get creative. For example, your car has broken down, and you don’t have enough funds to get it repaired. Could you get some Youtube videos and find a solution yourself? Or find a family friend that has a knack for cars? Of course, any repairs need to be safe, and there is always the option to carpool or take public transportation.
Sometimes asking for help isn’t a bad thing at all. And if you are really in a pickle, consider getting a bank loan. Some people might not be eligible, especially if you have poor credit. Those with poor credit scores can consider trade-in kinds such as pawnshops, or if you think it’s just short term help you need (which you can reasonably pay off), you could get installment loans from Money 4 You Payday Loans. With poor credit history, payday loans are an option as long as you are completely transparent on your affordability checks. And if you truly can’t afford it, it might be time to get creative again.
Keep Your Eye on the Ball
Follow these three financial rules and remember that it’s going to take effort and discipline, but in the end, it’s all worth it.
