Everyone needs financial tips in this world. That’s because we grapple with different kinds of financial situations at different stages of life. However, the single largest and perhaps the most important group of people in America who require financial tips are the young adults. As a matter of fact, these financial tips for young adults could help them shape the future course of their financial wellness that stretches well into the golden years of retirement.
Understandably, these financial tips for young adults can be used by anyone. However, I will focus on young adults because their needs are unique. Therefore, if you’re a young adult, continue reading.
In this article, I will discuss some superb financial tips for young adults and explain why these tips are important.
Table of Contents
Who Are Young Adults?
Let’s start by understanding who are young adults in the US. That would help you understand the reasons why these tips are specifically for you. Anyone can use them but they would serve better if you’re a young adult in the US.
Broadly speaking, a young adult in the US is a woman or man of age between 18 years and 25 years. You can extend this classification to cover those just over 17 years of age but below 26 years.
Generally, this section of the US population includes college students, fresh graduates and those working on their first or second job. It could also cover those that’ve opted for US military service upon attaining the eligible age.
As you can see from my definition, the young adult population mainly covers those who will or about to launch their careers. Though exact figures aren’t available for the number of young adults in the country, the US Census Bureau estimates that 11 percent of the American population comes within the bracket of 15 years and 25 years of age.
Best Financial Tips for Young Adults
If you come under the category of young adults in USA, here’re some of my best financial tips for young adults. Using these tips could help secure a stable financial future and have no fears or apprehensions over retirement. Additionally, these tips can also help achieve life landmarks on time.
Here we go.
Repay Student Debt
My first and perhaps the most important financial tip for young adults: eliminate all your student debt. Maybe you’re unaware but student debt can actually set your life back by as many as seven years, if not more.
Unpaid student debt means you’ll end up with a bad credit score. This has a cascade effect and delays other major landmarks in life such as buying a house and sometimes, marriage. Therefore, clearing your student debt is the best tip that I can offer since it could help have a better future.
Also Read: How To Pay Off Debt Fast With Low Income – Easy, Effective Tips!
Start Investing
The second most important tip I can provide is that you start investing. Millions of Americans miss out on the opportunities of getting rich and creating wealth merely because they’re unaware of how to invest or where to invest. Above all, there’s a reluctance to invest because most people believe that investing can be risky.
To begin with, there are superb apps in the US that enable you to start your investment journey with as little as $5 per month. You can download the Acorns or Robinhood app and start by investing $5 or more, according to your wishes. If you’re confident, open a full-fledged stock investments account. You can get tips on investing on most of these apps.
Also Read: 24 Best Investment Apps for you in 2024
Eliminate Addictions
Young adults in the US are also susceptible to addictions such as alcohol and drugs. This is the third most important financial tip I can provide- eliminate or avoid drug and alcohol addictions. In fact, an average American addict spends over $2,500 per month on booze and sometimes as high as $5,000 per month on drugs. Other than causing you to waste money recklessly due to these addictions, you could also end up with severe health problems or land in serious crime.
There’re several ways to eliminate addictions such as joining a support group. You can join them free of cost and recover to have a healthy financial and overall life. Eliminating addictions can also mean you’re not isolated socially and don’t suffer in your chosen career.
Freelancing
Another thing that you might be unaware about is the vast potential of freelancing. About 51 percent of the working population of the US does freelancing either fulltime or part-time. And fulltime freelancers earn at least 2.6 percent more money compared over those who don’t. Freelancing allows you to boost income and keep aside enough money for investing. In return, you might have to work only two to four extra hours during your spare time.
However, the efforts will prove worthwhile since you will have a large savings and investment portfolio by the time you’re in 30s. There’s a huge demand for almost every skill in the freelance work market. Visit websites such as Upwork to find freelance work that suits your educational qualifications, skills, expertise and passions and find where you could fit in the freelance market.
Also Read: Top Freelancing Jobs | Freelancing Job Opportunities From Home
Real Estate Investments
Understandably, investing on real estate such as buying a house might prove hard for a young adult, unless you have enough money to repay mortgage or buy one cash down. Buy a house if possible. However, if you can’t buy property, I suggest you invest in Real Estate Investment Trusts or REITs as an alternative.
Basically, REITs collect your money and invest on promising real estate projects or land. You get returns based on the profits that the real estate makes. REITs are rapidly emerging as one of the best opportunities for Americans to enter real estate investing without the need to buy a house.
Also Read: How Much do Real Estate Agents Make? Can You Make Good Money as Real Estate Agent?
In Conclusion
These five best financial tips for young adults are fairly easy to implement in your life as a young adult. They take into consideration various factors such as debt and future plans for a young adult. You can also invest on retirement plans to secure financial future during golden years.
Ashwin (Win) Honawar is an accomplished journalist and poignant author with 33 years of experience. He is renowned for his daredevil journalism and engaging narratives that explore various facts of human life and the resilience of the human spirit.
