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Adulting Financial Tips We Weren’t Taught

28 February 2018 No Comment

You were probably taught some basic mathematics when growing up and you are still applying the knowledge to your finances but you were not taught that pleasurable things such as dining out, drinking and splurging some money on entertainment can drain your budget faster because you get caught up in the fun. According to Check Into Cash, there are some adult financial tips we probably didn’t learn in school but we now have to learn as adult, these include the following;

#1: Where money comes from

At a tender age, kids already know what money is, and the only way they know money come from is work.  You have to work to get paid. Since kids know that they wouldn’t get paid if they don’t work, it was difficult to tell them that whining does not always end in money. It is good to learn about work ethics very early but 99% of kids are not taught about the need for a passive source of income, hence all they know is to go to work, get paid and that’s it. Parents even make their kids earn income by performing house chores but they never taught them to be financially independent by creating a new source of income for themselves.

#2: The freedom from debt

Most kids were never taught to reject excessive spending and the effect of debt on their finances. They were never taught to say no to the things they wanted just because they didn’t have money, kids eventually learn to say no when they become adults and the burden of debt has started weighing on them. Adults will eventually be forced to delay pleasure at some point, in order to stay away from debt, hence kids must be taught the simple financial rule; If you don’t have money, just don’t buy it! This is the only way an adult can live a debt-free lifestyle.

#3: Credit cards are not always a good idea

Owning a credit card attracts some potential pitfalls, and the reason being that your debt can get out of hand if you are not on top of your spending. There is a very high chance you may not be able to repay your debts if they get out of hand, hence an average adult must be careful when getting a new credit card. A credit card can be beneficial, financially when used the right way, as a matter of fact, being a responsible credit card user is perhaps one of the easiest ways of building a good credit score especially when you repay the debts on time. One credit card is different from the other and when you stay on top of your expenses, you can make larger purchases, knowing well you can repay on time.

If you are getting a credit card for the first time, you may want to go for the one with 0% interest rate which is used to lure new customers when they collect their first cards. Make sure you switch in-between credit cards and banks to take advantage of freebies such as 0% interest rates. If you are considering a Payday loan that is very easy to repay, one top recommendable option is the Payday loans in Wichita

#4: Always shop around for the best deal

According to Check Into Cash, every adult must learn to shop around for the best deal on whatever they want to buy. This may be boring but the differences between Insurance, energy, savings, and investments, can be massive, hence you need to spend your last bit of time on researches, especially on the financial terms of these companies to avoid spending more than necessary especially on energy bills, car insurance, and even the cost of student bank account. An adult must be aware of the penalties attached to some unarranged overdraft hence you must be prepared to switch whenever there is a better offer coming up somewhere.

#5: Don’t trust everything the ads tell you

It is easier for kids and teens to fall for everything they see in the ads, but according to Payday loans in Wichita, adults must exercise refrains and be reasonable when products are promoted on the TV, social media, or magazines and newspapers. Just because an ad is promoting something for free does not mean it will eventually be free, there are lots of cases of organizations misrepresenting information on their ads, hence there are lots of promotions that wouldn’t eventually save you cash, you just have to be savvy with the way you spend, and read reviews or ask people for recommendations before you purchase any product. There are lots of dirty tricks used nowadays by supermarkets and retailers.

#6: The power of compound interest

Compound interests are usually taught in schools but you wouldn’t understand the magic until you become an adult and you put the principles into practice. Compound interest is simple, it speeds up the growth of the interest on your savings or investment because the interest simply multiplies over time by adding interest upon interest. To enjoy the benefits of compound interest, you need to be patient with your savings, let it compound for a while before withdrawing a lump sum.

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