Budgets

Budgets

Budgets are a great tool for a young adult to make use of especially in their young life when they have many things to save for in their future (i.e. mortgage, car, etc.). 

Budgets are a powerful tool in that they help you still have everything you need without spending way too much money on things. You can come up with a budget by yourself, with your parents, or with a financial adviser. For instance, a budget could be 40% of your paycheck goes into savings, while 30% goes to bills and whatnot, 10% goes toward food, 10% goes towards personal entertainment, and lastly 10% goes to tithing at church. If this person puts the majority of their money into savings but has enough for the other areas of his life, then he'll have lots saved up in his future, no matter what he makes. 

As you can see, a young adult can use budgeting to avoid financial trouble and to maximise their savings in the end and make their bank account happy. Combine the bank cash with some of the other investment tools in my previous post, this young adult could really come ahead in life.