If you are single and young, enjoying life is your priority. This is especially true if you are just in your 20's or in early 30's doing whatever you want whenever you want, and having to answer to one but yourself. It can be an awesome time of unparalleled freedom.
But be careful, it can also lead you to several financial pitfalls. You must always be financially cautious, and we've listed some ideas fitted for you as a young individual/professional:
1. Think Long-Term - When you don’t have a spouse or kids, it can be a lot easier to live only in the moment. Read this: Every peso you neglect to put away now is one less peso you’ll have down the road.
Since you don’t have all those extra obligations tying down your money, now’s actually the perfect time to start building up some nest eggs and getting into the habit of saving.
2. Hey, you need Insurance - Even if you’re ridiculously healthy, don’t skimp on life insurance. Anything can happen. A small payment a quarter is well worth the security of knowing you’ll be covered should the unthinkable happen.
3. Just save 1/3 of your income, every payday - And it doesn't necessarily means directly on bank! Aside from religiously saving your income in a deposit account, try other alternatives like investing it in a mutual fund. Now that's perfect for you.
4. Control Dine-Ins - Dining out is one of the leading financial wrecker for young professionals. If possible, do dine outs with your friends or colleagues only during weekends, not every night!
5. Don't wait for that 'Extra Money' - Savings must be automatic. You wouldn't have that extra money in the first place, if you actually put that money 'already' in a savings account.
In the end, your financial situation will change with every big life event that comes your way, but as long as you observe these basic financial fundamentals, you’ll be in good shape to meet the future, whatever it happens to bring.
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