When you’re under 30, you might think that you’ve got your entire life to get your finances in order. However, even though you may think that 20 years feels like nothing now, the truth is that they can flash by in the blink of an eye. Before you know it you’ll reach retirement age, and find yourself with nothing to show for it if you don’t plan carefully. 

The best way to ensure but you can buy yourself a house, a car, and comfortably retire is to start planning as soon as possible. Here are some of the best financial tips that you should do sooner than later.

Budget

Budgeting is something that may seem simple yet can make a considerable difference in your overall financial health.  A budget creates boundaries that help you stay within your spending limits for the month. 

Without a budget, it’s easy to find yourself overdrawn at the end of the month without having paid all of your bills. After you get paid, make sure that you carefully allocate each part of your budget so that you know what you have left over for the rest.

For example, once you’ve budgeted all of your basic living expenses like utility bills, rent and groceries, then you can make wiggle room for the other things in life like entertainment.

Start Saving Young

One of the best things you can do for yourself is to start saving as soon as possible. It’s true that when your salary isn’t that high, it may seem pointless to only put away a small amount each month.  

However, when you start young, even something as little as $20 a week can make a significant difference over the years. Incorporate savings into your budget, and you won’t even notice that the money is gone.

Put Aside Emergency Funds

Savings is important, and so are emergency funds. Unlike savings which is for your retirement or particular purchases that you’re hoping to eventually make, an emergency fund is specifically for emergency situations— like car repair or medical emergencies. 

That way, you don’t have to dip into your savings account since you’ll have funds specifically set aside for emergencies.

Avoid Credit Card Debt

Credit card companies start targeting people at a young age to build their credit.  Unfortunately, some young people get themselves into debt far too young, and spend decades trying to pay off the debt that they created in their 20s. 

Ideally, you should avoid too much credit card debt in your younger years or you will pay for it down the road. Never buy more than you can afford, and always prioritize paying off debts before anything else. Remember, debt comes with interest attached.