In today’s day and age, there are many things that society has defined as what it means to be successful. When most think of success, the first thing that comes to mind are store-bought accessories and numerous luxuries. From visiting five-star hotels, vacationing at exotic beach resorts, and even eating the most exquisite meals, many young people would love to dive into these pleasures, wouldn’t they? What many young adults of this generation don’t realize, however, is that there’s more to income than spending your hard-earned cash on the most expensive things. After all, while beach resorts and five-star hotels are amazing, are they really necessary, especially if you have other priorities in mind?
Many times, in fact, adults only go to these hotels or resorts as a way to treat themselves. Such as during a summer vacation or Christmas break. Between work, kids, and even paying the bills, they’re definitely not something that most adults partake in on a regular basis.
Speaking of which, handling income wisely is something that young people of this generation need to learn. Upon getting a first allowance, for example, many teens would be tempted to spend it at the movies or buy their favorite sports cards. There’s nothing wrong with going out and enjoying yourself, but it would be a wise choice to start saving up for the future as well. Overall, what are some of the best income tips for the young adults of this generation? Here are a few things to consider.
#1. Get Into a Habit of Saving Money
As I had mentioned before, many times, young adults are quick to spend money the second they get their hands on it. In all honestly, who can blame them? For a majority of their life, they might have been dependent on their parents for cash. When he/she starts working and getting paid, however, it’s a true sign of independence for them.
With that said, get into a regular habit of saving your money, no matter how much or little you earn. There’s nothing wrong with going to the mall or buying a pair of new shoes. However, remember that there’s a huge difference between your wants and needs. For example, let’s say you’ve recently graduated from college, and have just started a new job. To your surprise, the position makes a fairly decent amount of money. You might be tempted to buy whatever you want, but have you also considered your needs as well? Maybe you should start saving up to pay off your loans, or start paying for grad school courses. Overall, saving money is one of the first steps in being smart about your income.
#2. Pay Your Taxes
When you were young, I’m sure you’ve heard many times from adults and your own parents, about the dread of having to pay off taxes. You might have never understood the concept of it, but once you got older, you knew full and well what they were dealing with. With that said, one of the best income tips to keep in mind, is paying your taxes. When tax season rolls around, make sure to report all your earnings, and be honest as well.
As another helpful tax tip, it might even be beneficial to start adding up your earnings weeks or even months before the season comes around. Many people submit their forms at the last-minute, and struggle to organize their expenses. On the bright side, while you might not enjoy paying your taxes, a refund is always something to look forward to. Lastly, if you’re an independent contractor, taxes are especially important. The downside is that taxes aren’t taken out when you get paid, meaning that you have to compensate for social security. Overall, if you’re a millennial, keep these important tips in mind.
#3. Break Your Income Goals Down
No matter what you’re trying to accomplish with your income, you need to take it one step at a time. Some income related goals might be short-term, but there are several which will take time and patience. How can you break these goals down? First of all, it depends on what you’re trying to accomplish. Let’s say you recently started a new job. You’re still living with your parents, and are looking to move into your own apartment when you earn enough. Not only should you track your bi-weekly earnings, but also look at the expenses of the apartment you want to rent. How much would you need to earn before you can finally move out? How much is rent for the apartment, and could you spend your cash on accessories as well? As another example, if you wanted to pay off your student loans, you’d have to take it one step at a time. After all, that’s why you need to set up a monthly payment arrangement with your loan service. By making this agreement, you get some leeway, your loans don’t go into default, and you’re not forced to make a full payment upfront.
For more information about useful income hacks for millennials, feel free to contact us today at Income Bud. We are a blog that focuses on numerous topics about creating income. This includes opportunities from home, paying down debt, tips on income strategies, wealth building, and even how to work from your couch. Currently hosted on brandbucket.com, we look forward to hearing from you, and assisting you in the best way possible.