Many of us graduate with little to no knowledge of personal finance. We are taught to get a good education, find a good job, and work until retirement age. This strategy may have been effective 40 years ago, but we all know reality looks completely different. In today’s world, people who may have dedicated many years of their lives to a company can easily lose their jobs the next day. I’ve seen this happen multiple times, especially during a pandemic. It feels as if there is almost no incentive to be loyal to your employer when job security can disappear at any time. In other words, your financial future immediatly becomes your responsibility.
Now this might sound a little intimidating, however it’s actually quite empowering to know you can direct your own future. Here are the 5 things you’ll learn from this blog to improve your personal finances:
1. Setting up the right bank accounts to get you started
As a child, you only needed a simple chequing or savings account to start your financial journey. As an adult, however, there are so many bank products available that you won’t even know where to start. To simplify, there are only 4 types of bank accounts that exist and many variations of these types of products, the most important one being the chequing account. Check my blog post on 4 Bank accounts you must have to succeed in adulting to make sure you are prepared for this journey.
2. Start saving and investing while managing your debt
Even when you're in debt, there are many ways to manage the debt while building your savings and investment accounts. It's all part of smart financial planning. The key is automation. The less you have to stress about where your money is going, the more time you'll have to focus on building your wealth. Click here to get my free debt payoff tracker. This tool will help you simplify your debt repayment plan and allow you to easily visualize your progress.
3. Build a budget plan that is super simple to follow
Learning how to budget is fundamental to your personal finance journey. There are many free budgeting tools out there that are overly complicated so I created a one page guide that’s super easy to follow. Click here to get your Free Personal Finance Starter Guide. It will show you which bank account’s you’ll need, how to divide your income into your monthly budget, and how to build up your savings from scratch within.
4. Planning for emergencies and preparing for economic downturns
Along with budget planning, you will also be including an emergency plan for unexpected events. For example, job loss due to a recession or a pandemic, not being able to earn an income due to health complications, leaving your job or reducing your work hours to look after a loved one or just bad luck. Having a backup plan in place for those urgent times is necessary for every individual so that we can focus on those life events and not stress over paying the bills. This blog will provide you with the tools you need to help build an emergency fund and calculate the amount of money you will need to save for those situations.
5. Paying off your debt one step at a time so you can start living a financially stable future
Graduating with a mountain of student loans is an awful way to start off your career. Not all of us are blessed with an education savings plan or a year of paid internship so many milennials have ended up with a mountain of debt. I want to let you know that there is a light at the end of the tunnel and you will be debt free. The key to paying off your debt is motivation and automation. As long as you’re willing to do it, you will find a way. In this blog, You will learn which debt to prioritize, how much money to pay off for each debt, what are your options when you have debt with multiple creditors, and how to set your money on autopilot so that your earnings will automatically pay both your debt and living expenses. Once you’re set up, you won’t have to spend more than 30mins a month to make sure your life is on track.
Conclusion
Remember, this blog is a tool created to guide you through your financial journey. Don’t stress too much about getting it in order or getting it right. Go at your own pace. Each step you take will get you closer to your goals and you will start seeing everything fall into place.
-The Wealthy Sheep
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