If you find that you’re in a place in life where you want to start getting serious about your personal finances, mentors can be a powerful resource. And if there’s no one that you know personally that displays great financial acumen — don’t worry, we have you covered.
There are some personal finance lessons that are typical for people to glean from their mentors and we’re here to share them with you. These can be especially useful investment tips for those of you who are in college. Here are some personal finance lessons that you might learn from your mentors.
Start Investing Early
The earlier you make a habit of investing, the easier it’ll be for you to reach that million-dollar mark in retirement. This is because when you invest your money, the value compounds over time. As such, the later you wait, the more money you’ll have to invest to hit that mark at retirement age. So if you’re a college student looking for budgeting and personal finance tips, make sure to take advantage of this one and start investing as soon as you can.
Invest Safely
While many riskier investments, such as futures and cryptocurrency, may seem like exciting things to invest in, it’s important to remember that these investments are more akin to gambling than investments. Investing safely means investing money in places like index funds and bonds, and not touching that money for a number of years — preferably decades.
This form of investing is tried and true and will help make the future you richer and more secure in the realm of finances.
Create a Budget
Oftentimes, it can be easy to overspend when you don’t have a clear idea of how much money you can afford to spend on a monthly basis. Having a budget can help you combat this problem and start getting on top of your personal finances.
With a budget, you’ll have a clearer idea of how much money you can spend every month while still reaching your target savings goals. In addition, writing out a budget can also help you determine the areas where you’re overspending and can help you develop better financial habits.
Start Making Money in Different Ways
Today, having a side hustle has become normalized for many individuals searching for financial independence. For some, these side hustles can sometimes have the potential to become full-time careers and a way to financial freedom. This being the case, it can be useful to start trying out various ways of creating new income streams. This could be selling macrame crafts on Etsy or power washing windows in business parks.
By planting the seeds of various side hustles, you can potentially increase the amount of money you have coming in and improve your financial situation.
Stop Eating Out and Make Coffee at Home
For a lot of us, eating out can become a pervasive habit that we stop noticing after a while. Unfortunately, it’s not a habit that our bank accounts stop noticing. The price of eating out and buying coffee from a coffee shop can add up to hundreds of dollars a month if we’re not careful.
Being aware of this, it’s actually pretty easy to take the proper steps to combat this. Buy food and coffee from the grocery store and start cooking and brewing at home. There are endless recipes and techniques you can find online to cook delicious, cheap, and satisfying meals.
Become a Coupon Expert
Though many of us have probably received thousands of coupons in the mail over our lives, few of us have actually used them. While coupons may not seem like they save you all that much money, over time, they have the potential to possibly save you thousands of dollars.
This being the case, make sure not to toss out those coupon booklets next time they appear in your mailbox. Cut out a couple of products that you usually purchase and start saving a little more money than you have been.
Treat Saving Like Bills
Oftentimes, it can be easy to put off saving money because it doesn’t always feel like it’s important to start immediately. This can be a slippery slope, because once this becomes a habit, it can become years of forgetting to save. A good way to combat this problem, and ensure that you’re saving the right amount of money to reach your financial goals, is by treating savings as a bill.
When it comes to things like our rent, phone bills, insurance payments, and other financial obligations, we make it a priority to get these paid. By adding savings to the list and treating it like another bill, saving becomes easier, more automatic, and less of a battle.
Cut Down on Unnecessary Expenses Wherever Possible
For some expenses, it’s easy to accept them as parts of life that you can’t avoid. These can be things such as gas bills and rent. In reality, you can affect how much of your money is going to these living expenses. When it comes to gas, using a bike or making an effort to carpool can potentially save you hundreds of dollars a month that you can be saving or investing. When it comes to rent, though it might be a little difficult, you might have the power to move to a cheaper city or state.
By reexamining expenses that you’ve taken to be normal, you can potentially reach your financial goals sooner.
Reaching Your Financial Goals
While it can sometimes feel like a distant dream when thinking about reaching your financial goals, fostering the right attitudes and habits around personal finance can help you make those dreams a reality. Just because you don’t have a personal mentor doesn’t mean that you can’t take some useful lessons and apply them to your life.
By taking these suggestions to heart, you’ll be on your way to reaching your personal finance goals before you know it.
