Young adults are among the most vulnerable groups of people to make bad Financial decisions. But it is also the perfect time to start planning your finances and ensure e clearer future. Of course, you can never be completely secure financially, but with the right decisions, you can get close. So where do you start?

1.    Guard your health

Although at this stage it might seem unimportant, your health will be your biggest ally or enemy in the future. If you are in good shape you will be able to focus on greater tasks. Start with a minimal health insurance and continue with a regular exercise routine and a balanced nutrition.

2.    Get a grip on taxes

Taxes are usually avoided and considered as a chore by young people. The good news is that there are plenty of useful tools you can consider to help you get a grip on taxes. You may even want to consider some dedicated smartphone apps to keep your taxes up to date.

3.    Start saving money

Saving money may not be on your priority list but many professionals advice on Saving at least 10% of your earnings. This can be a great tool to reduce some of the pressure of future purchases or it can represent a good safety net.  A good idea is to invest these savings wisely to grow your nest egg.

4.    Plan your expenses

Planning your spending is crucial if you want to have control of your financial situations. This means that, at least for the larger expenses, you will need a financial plan which will save you from impulsive spending.

5.    Start saving for retirement

Retirement might seem far away but you would be smartly advised to start saving from this moment. Together with your state pension scheme you can contribute to private pension schemes which might be more flexible when you reach the pension age and you may even access all your savings at once.

6.    Guard your valuables

Although you may not have a lot of valuables at this moment it might be worth it to insure the things you do have. These can include a phone or car insurance but can even go as far as insuring your rented place against burglary.

7.    Be careful with borrowing

Taking a loan or borrowing money is not advisable at this stage of your life. You will need some financial stability before taking any loans. If you decide to take loans make sure you invest them in purchases which increase in value such as home and avoid purchases which decrease in value such as cars.

8.    Spend money wisely

Of course, it is not possible to end all your spending but choosing where to invest might be the right way to go. Investing in traveling, courses or gym membership will significantly improve the quality of your life and enrich you as a person. This is why they are always preferred to wreck less spending. By investing in learning, you keep an open mind and improve the chances of financial success.

For more investing advice check out the full tips at Cleveland Leader.

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