A quick loan may seem like a lucrative fix for young adults, especially if paying it down won’t be a problem. It may well be a get-rich-quick opportunity, but it may also point to a lack of financial responsibility, which can lead to big problems down the line.
Your job, from the moment you receive your first pay check, is to protect your financial future. This is something that many young people don’t understand. Adults in their late twenties are now facing debt crises and credit problems as a result of having not saved money consistently starting with their first check.
Those who would impart financial advice are those who have been through financial hardship, those who would look back at the path they might have taken had they known what lie ahead. Young people may view payday loans as a way to ‘pay it off later,’ but taking out loan after loan can be costly with the lender’s ROI needs. Sometimes, it’s worth it to wait, and to keep payday loans on the back burner for real financial emergencies, which a healthy dedication to your savings account can help you avoid.
The concept of saving money is one which many parents strive to instill in their children with their first allowance. Pass up the occasional sweet treat for that new bike. Instant gratification has led to addiction problems in young adults. Those who learn to stash their cash at an early age are at a lower risk for financial problems, including those related to drug and alcohol addiction.
So how do you save money when the urge to spend it the moment you get it is so strong?
Set up direct deposit with your employer. This way, a certain percentage of your money goes into your savings account every time you get a pay check. 20% is a healthy bet. This ensures that at least one fifth of your assets is both protected and fluid for emergencies. You may have certain things in mind when you start saving. Eventually, those things will fade from your mind and saving will become routine.