Money Lessons I learned as an Adult

Navigating the world of personal finance can be overwhelming, even for an adult who has quite a bit of experience in the working world. With some smart planning, a good strategy and understanding of the basics you should be able to develop the money-management skills you need to get your finances under control. Handling money is a lot different when you were twenty and single, and when you’ve suddenly become a mom (because I was given the challenge of responsibility in raising my nephew at an early age). Here are a few things I learned about money that I believe are valuable, as well as some fundamental truths of personal finance that everyone should be aware of.

Saving a portion of your paycheck each month will have a big payoff in the future. 

Having your own savings will make you feel more secure, knowing that you have a fund that will tide you over in cases of emergency. Ëver since I was kid, I was always taught by my parents to save portion of everything, however small amount. When I started working, I became more frugal with my spending and opted to save most of my salary (they say ideally, it should be at least 80 percent) for those “rainy days.” If you can’t save that much, at least set aside around twenty percent, and make sure to transfer it into separate bank accounts to prevent yourself from accidentally spending your savings. 

 It’s perfectly okay to want to nice things so long as you can afford it.

As you move up the corporate ladder, your salary also increases. So there’s nothing wrong if you want to dine out, do a little shopping or reward yourself for a job well done. Ï give in to my indulgences on an as-needed basis. I enjoy a few quality and luxury experiences and items once in a while, but nothing too decadent, too often. When you become a mom, these rewards also change in kind, like get-togethers and trips with the family or a date night with hubby (if you're already married). 

Investing early is more advantageous because you have more control over your cash flow. 

If you start investing in your twenties, your cash will grow through the power of compounding, and the earlier you start, the more years you’ll have to generate earnings. Make your money work for you as soon as you can and as often as you can because you’ll enjoy the much needed dividend payoffs when you become a mom, when your time is limited and when your appetite for risk is far less.