Four Financial Faults

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Finances.

Does that word make you cringe?

It is no secret that money is universally stressful. Whether you are a freelance writer and artist in a new city or a billionaire on a yacht, chances are that you have thought about your financial situation at least once in the past 12 hours.

I am no expert by any means when it comes to having a lot of money, but over my time transitioning into adulthood and the pesky bills that come with it, I have discovered four big faults that can be the cause of a downfall when it comes to managing one’s own bank account.

You Don’t Save
A fairly obvious statement, but if you don’t save money, you won’t have money. The golden rule of money management has always advised people to put 10% of every check into the bank. While it may be impossible for someone living paycheck to paycheck to be able to manage this, I have found that the more money I am able to put aside for later down the road, the better I feel at the end of each month when the bills come due.

You Use Plastic
Credit cards are convenient, but dangerous. Yes, they save space and time, but those quick swipes accumulate over the course of a month and can end up giving you quite the surprise. An easy way to cut down on that spending is to only pay in cash or check. Immediately having that money taken from you will help you keep things in perspective, and those name brand scented candles from ever reaching your apartment.

You Don’t Plan
How much money do you see yourself making a year from now? Ten years from now? Having a financial goal and a plan as to how you will achieve it is a great motivating factor when it comes to increasing your income. Always looking for the next client or gig will help to not only boost your resume, but will also give you grounds for a higher charge later down the road.

You Have One Income
Most people in America’s modern career culture rely on one income at a time for the course of their entire lives. This can be extremely problematic if you are to ever lose your job, or become unable to work. Get creative and find a way to have more than one income. Whether you work part time hours in a corporate environment and freelance on the side, or start your own consulting agency, having that flexibility both increases your personal revenue, and gives your confidence a boost.

Money is a tough subject to face, especially for the younger generation constantly stuck in the grind of job searching. The best advice that I have to ensure a financially stable future is to start now. Even if you are just putting pennies in the bank today, your success will grow into dollars tomorrow.

 

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