Your finances are a topic you’d prefer to avoid discuss when money’s too tight to mention. After all, why talk about something you don’t have? In reality, the financial decisions you make now have lasting implications for the rest of your life. So, even if you don’t have a lot of money to work with, you need to make it work for you. One of the easiest ways to make sure you get the most out of the money you have is to make sound financial decisions. Acting rashly and spending your money unwisely will both literally and figuratively cost you.
Let’s face it, very few of us are going to strike it Mark Zuckerberg or Kim Kardashian West rich. However, doing an ordinary job and earning a regular salary doesn’t mean you have to struggle financially. To guarantee a secure financial future, you need to make some big financial decisions. None of them should be entered into lightly. One poor decision can have multiple negative ramifications. Knowing what you’re getting and what it will cost is vital for sound decision-making.
Here are 15 of the most important financial decisions you’re going to need to make in your lifetime:
Decide on a career path and how you’re going to get there
The first thing to consider is what you plan to do with the rest of your life. Your planned career path will give you an indication of the type of money you’ll be earning. If you aspire to earn a lot of money, you need to choose a high-paying career. Your plan might be to work to live instead of living to work. You’ll probably have to settle for less money in exchange for less stress.
Once you know what you want to do, decide on what qualifications you need. Investigate the cost. Make sure that the return on your education investment will be worth it in the long-term.
Will you need financial assistance?
Few people get a ‘free ride’ full scholarship to the top colleges in the country. Even with a partial scholarship or financial aid, there are other costs to cover. A part-time job might solve the problem to some extent. Most often, it’s not going to cover all your expenses.
Unless your parents have spare cash lying around, a student loan may be necessary. The cost of getting a good education at the best universities can be astronomical. Keep in mind the doors a good education opens. Have a good understanding of what the repayments will be to make sure they don’t bankrupt you when you start working. Borrow the bare minimum to avoid racking up huge debts.