We all know that the sooner we develop good financial habits, the better. Living within your means, and sticking to that, can help you on the path to financial freedom. But how do we do this? “MindBodyGreen” spoke to some experts who have spent years “mastering the art of frugality.” Here’s their advice to younger generations.
- "In your 20s, explore, learn who you are, but avoid crippling debt."
- "Start early and set clear goals. Whether you want to buy a home, retire early, or start a business, having specific objectives will motivate you to stick to your budget."
- "Unexpected expenses can derail your financial plans. Aim to build an emergency fund that covers at least three to six months' worth of living expenses. This cushion will prevent you from going into debt in times of crisis. To help make this happen, set up automatic transfers to your savings and investment accounts."
- "Shop smart. Look for deals, use coupons, and compare prices. Avoid impulsive buying, and give yourself time to think about nonessential purchases. You might find that you don't really need them. If you do and it's a good price, resell it for a profit."
- "Save, spend, and give in an intentional way."
- "Avoid relying on debt. Remember that debt eats your income."
- "Stop looking at a budget as a jail sentence, and see it as a permission slip."
- "Set goals, create a budget, and begin planning for your financial future sooner rather than later."
- "In your 30s, continue educating yourself and your family about finances and include end-of-life matters, trust, wills, funeral plans, long-term care, and more."
Source: MindBodyGreen