Written by: M Katie Helle, CPA
Managing your finances may seem like it could be more exciting, but it’s a crucial life skill for young adults. Whether you’re earning from your first job or receiving an allowance, here’s a concise guide on how to handle your money wisely:
Master Budgeting: Create a budget that tracks your income and expenses. Knowing where your money goes empowers you to make informed decisions. Numerous budgeting apps can help simplify this process, making it easier to stay on track.
Saving for the Future: Build an emergency fund. Allocate a portion of your income to a dedicated savings account. Having three to six months’ worth of living expenses stashed away can provide a financial safety net during unexpected circumstances.
Invest in Yourself: Consider your education and self-improvement as investments. Whether heading to college, vocational training, or developing personal skills, these investments can significantly boost your earning potential.
Early Investing: Embrace the power of compound interest by starting your investments early in your 20s. Even small contributions to retirement accounts or diversified portfolios can grow substantially over time. Explore investment options and, if needed, seek advice from a financial advisor.
Give Back: While saving and investing for your future is vital, remember the significance of giving back to your community. Donating your time or money to causes you care about not only brings fulfillment but can also have financial benefits through potential tax deductions.
With discipline and the right approach, you can set the stage for financial success and positively impact the world. Start now, and your future self will thank you.
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Katie Helle has been in public accounting since 2009, with experience in individual and small business taxation, specializing in payroll and sales tax reporting and compliance and QuickBooks accounting software. She is an Arizona native and resides in Chandler, Arizona with her husband, young daughter, and two goldendoodles. Outside the office, she is actively involved with community outreach, enjoys fitness, and can be found with a power tool or two in her hand for her many crafts.