The Financial Truths I Wish I Knew Sooner
As I reflect on my financial journey, I realize how unprepared I was to navigate the complexities of money management. My parents, while well-intentioned, didn’t teach me much about personal finance, and I didn’t learn about it in school either. Now, as I’m married to an accountant, I’m finally getting a grip on my finances. But I wish I had known these essential truths earlier, especially when I was starting college.
Credit Isn’t the Enemy
I still don’t have a credit card, and it’s holding me back. In college, I was afraid to open a credit account, fearing I’d overspend. While I avoided debt, I also missed out on building a healthy credit history. Now, I struggle to get approved for loans or rent a decent apartment. If I could go back, I’d open a student credit card, use it responsibly, and pay the balance in full every month. Moral of the story: Don’t fear credit; use it wisely to build your financial foundation.
Budgeting Isn’t Restrictive; It’s Liberating
For years, I thought budgets were restrictive and limiting. But the truth is, they’re freeing. Without a budget, I lived in a cycle of feast and famine, blowing my entire paycheck on impulse purchases. Now, I know that budgeting allows me to prioritize my spending, save for the future, and enjoy guilt-free indulgences. Make a budget, allocate some fun money, and put aside a portion for the future.
Not All Student Loans Are Created Equal
I wish I’d known more about student loans before accepting them. Research your options, and don’t take more than you need. I took out loans without understanding the terms, and now I’m paying the price. My advice: Explore grants, scholarships, and low-interest loans. Borrow only what you need, and avoid wasting money on unnecessary expenses.
Negotiate Your Salary from Day One
After college, I landed a job, but I didn’t negotiate my salary. Big mistake. I wish I’d known my worth and advocated for a better deal. Don’t settle for what others think you’re worth; know your value and negotiate accordingly. This is especially crucial for your first job, as it sets the tone for your future earning potential.
Invest in What Matters to You
There’s no one-size-fits-all approach to investing or spending. Focus on what brings you joy and invest in those areas. For me, it’s reading and writing. I invest in books and online courses to improve my craft. Experiment during college, take advantage of student discounts, and find what truly makes you happy. Don’t waste money on things that don’t bring you fulfillment.
As I look back, I realize that these financial truths would have made a significant difference in my life. I hope my little sister, who’s starting college soon, will learn from my mistakes and start building a strong financial foundation early on.
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