Just turned 18 need help.

[nicka100s]

Hey so I've opened up a bank account and everything, now I just need some advice on managing money.

 

[Quokka]

Hey so I've opened up a bank account and everything, now I just need some advice on managing money.

If you want the best advice, go to your bank and talk to an advisor about learning to manage money.

If you want advice from similar aged teenagers/young adults, then my advice for you is the 50/30/20 rule. It's a simple way to budget that doesn't involve a lot of detail and may work for some. That rule suggests you should spend 50% of your after-tax pay on needs, 30% on wants, and 20% on savings and paying off debt.

You can also look at it as the 80/20 rule of thumb for budgeting, you put 20% of your take-home pay into savings. The remaining 80% can be put towards needs, and wants. But generally, putting away 20% is key, and you can always put away more if you want - but that's how I properly budget my money.

 

[XER0GRAVITY]

Open a savings account and move a percentage of whatever you make at the start of each month into savings. Make sure they give you a decent interest rate, then let it sit there and watch it grow.

 

[Ambrosia]

Pay for insurance
Pay for rent
Pay for food
Put a tiny bit aside for safety (for deductibles, emergencies, etc), this will build up over time.
Rest of it you can invest (index funds, ETFs, savings, whatever else)

 

[Nullcheats]

Find it a little odd you only just got a bank , however I live by this simple rule (of course) income is a big factor

Assuming you live at home still ?
Pay rent for a few months in advance (if you have the funds)
Anytime you get paid or have "money" simply cover all of your "needed" costs
Anything left over simply split (50% for savings) and %50 for anything else (takeaways , clothes , going out etc)

Main thing to note is keep your outgoings covered for and only spend what you can "afford" also do not be one of them people who start getting credit cards and enjoying it will be a very slippery slope to debt also spending can be additive but so can saving so you just really got to learn whats the minimum amount you need "available" for living costs etc anything else is just a luxury these days.

 

[Mistiq]

Just because you get paid, doesn't mean you have money.
When you get income, pay everything essential, put aside bare minimum for yourself, and then save/invest the rest.

 

[MC-Shop]

Open up a Roth IRA, Invest ANYTTHING you can every month. Put it in a ETF or mutual fund. (several do be diverse). Then live your life and do your best. If worst comes to worst. You'll be a millionaire by the time you retire.

If you actually wanna have a talk about financials you can always add me and we can talk: Mycri#8060

 

[nicka100s]

Just because you get paid, doesn't mean you have money.
When you get income, pay everything essential, put aside bare minimum for yourself, and then save/invest the rest.

Yea I agree, altho I only pay for food but my problem is I burn money on stupid shit

Post automatically merged: Jul 26, 2022

Find it a little odd you only just got a bank , however I live by this simple rule (of course) income is a big factor

Assuming you live at home still ?
Pay rent for a few months in advance (if you have the funds)
Anytime you get paid or have "money" simply cover all of your "needed" costs
Anything left over simply split (50% for savings) and %50 for anything else (takeaways , clothes , going out etc)

Main thing to note is keep your outgoings covered for and only spend what you can "afford" also do not be one of them people who start getting credit cards and enjoying it will be a very slippery slope to debt also spending can be additive but so can saving so you just really got to learn whats the minimum amount you need "available" for living costs etc anything else is just a luxury these days.

In my country I couldn't open a bank account before I turned 18, My parents could've opened one for me but they'd have access and manage my money so thats not really the point, also I don't have to pay rent since I'm still with my parents and in school. Thanks for the advice

Post automatically merged: Jul 26, 2022

If you want the best advice, go to your bank and talk to an advisor about learning to manage money.

If you want advice from similar aged teenagers/young adults, then my advice for you is the 50/30/20 rule. It's a simple way to budget that doesn't involve a lot of detail and may work for some. That rule suggests you should spend 50% of your after-tax pay on needs, 30% on wants, and 20% on savings and paying off debt.

You can also look at it as the 80/20 rule of thumb for budgeting, you put 20% of your take-home pay into savings. The remaining 80% can be put towards needs, and wants. But generally, putting away 20% is key, and you can always put away more if you want - but that's how I properly budget my money.

The advisors at the bank really cant be bothered to give advice where im from lol

 

[c0ntxt]

If you want the best advice, go to your bank and talk to an advisor about learning to manage money.

Worst advice. Never forget that banks are businesses and not your friends. They want you to invest in some of their products like a savings plan.