Young professionals have difficulty balancing expenses with the income they receive when they first start working. Therefore, if you have recently graduated take note of the following lessons on finance to improve your financial situation.
Know where you are standing
According to a study, see it here only 24% have financial education (basic). If you do not know where you are standing, you cannot trace a path to your destination. It is not the same as your personal finances are in 10, 0 or -100. Everyone can make a change, but you need to know the starting point.
What can you do?
Understand your personal finance structure with a wealth map, which allows you to easily clear your income, expenses, assets, debts and the relationship that exists between them.
Once you complete it you will know your starting point and above all you will know if your personal finances are a work of art or a real disaster.
Build multiple sources of income
The economic situation that this generation had to experience is different from previous generations. Nowadays markets are more competitive, revenues are more limited and expenses are too high.
If you want to survive and then live as you want, you have to contemplate the creation of multiple sources of income (which is easier when you still live with your parents).
Learn to manage your debt
According to a study, 81% of millennial have long-term debt. 54% showed concern when asked about their ability for their debt (educational). 53% have credit cards on tap and 50% could not attend to an unforeseen event if it were presented at this time.
What can you do?
First, differentiate between a constructive debt and a destructive debt.
Constructive debt is what you use to generate more money. For example, you borrow to specify, continue or specialize in your studies, pay tuition, and at the end of excellent professional preparation, the chances of getting a very well-paid job will help you recover that investment, a long-term investment but safe.[
The destructive debt is what you use to buy things that lose their value over time or disappear their value over time. For example a car, your holidays, parties, clothes, shoes, consumption in restaurants, consumables, that is, your lifestyle.
Once you can differentiate between constructive debt and destructive debt, so that you do not keep getting into trouble, it is important to determine if your debt is controllable or is already out of control. Once you can differentiate between constructive debt and destructive debt, so that you do not keep getting into trouble, it is important to determine if your debt is controllable or is already out of control.