Financial Tips For The Younger Generation [Part 3]

There are lots of things to be learnt about finances that people need to be exposed to as early in life as possible. I read the story about one of the world's top billionaires that said that he was taught about money and investment quite early in life, and he went on to make a shocking revelation of how he made his first investment at the age of six. This has gone to show that there is already a paradigm shift on how to the world view money and finances. Before this era, talks about money were reserved for adults but now, the case is no longer the same. So as the trend keeps unfolding, there are some financial tips that the younger generation should be exposed to so that they can grow with it. We took a look at some of them in our last episode and we will consider a few more here.

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1. Do not base your livelihood on just one source of income

There are many uncertainties surrounding the world as regards the area of finances. More so, the demands of the world is increasing everyday and even the poverty margin in the world is thickening that one source of income may not be enough to sustain you. This is why the only bailout should be to get multiple sources of income. The younger ones are to be taught this so that they will strategize themselves for plan B and so on. As a matter of fact, depending on just your salary to amass wealth will be a very slim chance.

It is by having multiple sources of income that you will be able to overcome some financial risks that are inherent in this era. Take the crypto space for example, in the last couple of hours, many uncertainties have been witnessed. Not just that, the level of bloodbath that was witnessed in the crypto space (particularly the Luna - Terra Blockchain) in the last few hours is very worrisome. Imagine if you have your entire funds inside Luna, at this point, what would you be doing? I am sure that many people have heard about this quote:

Do not put all your eggs in a single basket

Yes, however, there are more to the quote. Inasmuch as you are to put your eggs in different basket, you do not have to transport them in one truck. Imagine if the truck crashes, the whole baskets of eggs will be broken. What this means is that, when diversifying your sources of income, you should be vast about it. Imagine someone diversifying his funds between Luna and Ust, even though it is diversification, it is still within Terra Blockchain and it is still within the crypto space. You can choose between online and offline hustles to be comfortable.

2. Cultivate maintenance culture

A few weeks back, a friend shared with me how his car was giving off some unusual cranking sounds intermittently. I asked him when last he took his car for servicing, he told me it has been a while. I advised him to get his car for servicing but he keep procrastinating it, maybe because he was trying to manage his finances. Fastforward to some days ago, he told me that the engine of his car has knocked. Now he has to spend far more money on replacing the engine than he would have spent on servicing the car, and his pocket will definitely feel the heat. All these would have been prevented if he was keen on maintenance culture.

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Sometimes, there are some critical aspects that you do not need to cut expenses on because they may open you up to a far bigger expenses. Always learn regular maintenance. It may cost a bit to undertake regularly maintenance but at the end, you will understand that it is necessary. So as you make money, there is also a necessity to prevent loopholes through which the money can be drained on avoidable things. Remember that it is always better to maintain something and prevent it from going bad than to fix it when it has gone fully bad.

Even right in your homes, there are some maintenance skills you can learn and that will even help you to save some bucks instead of contracting a third-party. There are also some online materials (YouTube videos, etc) that you can lay your hand on to get some hacks on maintenance. Many of the things that people spend money on fixing can easily be prevented by checking and maintenance. It is also worthy to note that maintenance does not only cover material things but it also goes as far as maintaining one's health to prevent falling into sickness and spending more.

Thanks for reading