The Importance of Personal Finance In Your 20s (Part 1)

Organizing your personal finances during your 20s may seem unimportant and not worthy of your time now, but years from now you will look back and realize how important it truly is. Like many people in their twenties, you may be just out of college with have debt, making little money at your first job and very little assets to manage. However, there are still some great steps that you can take to build a strong foundation for the years to come. Laying a good foundation now will allow you to build wealth and create security in your life, that will continue to grow exponentially as you get older.

Follow this list to learn some important personal finance tips. If you begin adhering to these tips in your 20s, then you will set yourself up for great financial success for the rest of your life.

1) Educate yourself about personal finance using free online sources.

Many people graduate from high school, and even college, with little to no knowledge of how to manage personal finances. While it is unfortunate that many people still receive no formal education on personal finance in school, in this modern age we are lucky to have a ton of great resources available online. Gaining at least a basic understanding on what options are available for managing your money and accumulating wealth will be extremely helpful as start having to make important life decisions. Check out some of these great resources:

2) Create a budget.

Maintaining a budget is an extremely important part of organizing your personal finances and it should be a practice that you maintain throughout your life. You should have a firm grasp on the amount of money that you are brining in every month and what you are spending your money on. Creating a budget provides you with a visual of where your money is going, which helps you make responsible, informed and purposeful decisions as to how you allocate your money. If you are unsure on how to go about taking this step, here is a great article on how to create a budget.

It’s Time to Save Your Money.

Far too often, we hear people talk about how much they want to save money, but how they’ll get around to it next time. The problem is, next time is always now, and if you have a job it is never too late to make some adjustments to your budget. The team over at the Art of Manliness examined three all too common excuses for not saving money, and I must say, one of them really stuck out for me:

I don’t make enough money.

That’s  quite the excuse. The reason it’s so head scratchingly confusing is that it’s predicated on the notion that there is, in fact, a “proper” amount to save. But as AoM’s Brett and Kate McKay point out, you don’t need to stash thousands or even hundreds of dollars into a savings account each paycheck. Just start with a small percentage– 5% is their suggestion– and work up slowly until you reach a more comfortable number, like 15%. All it really takes is getting used to the changes that come with an reduced immediate income. But trust me, your future self will thank you for it.

Accounting Firms Needs to Embrace Social Media

Accounting is one of the oldest skills necessary to success in the world. Throughout history, people have always sought out accounting professionals to make sure that their finances were correct. Governments relied on accountants and auditors to make sure that taxes were being smoothly and money was going where it needed to be just as much as business-owners relied on them to make sure they weren’t nearing insolvency. While the field is here to stay, it’s individual firms and accountants themselves that are at risk.

We are currently entering the future of business. Things are changing at speeds that couldn’t have been fathomed in the past and professions are becoming obsolete if they can’t update and adapt to new technologies and demands from clients; the way business is being done is different now than it was even 10 years ago. Throughout all of this, accountants have remained vital, plying their trade with new gadgets even though their task is millennia old. Do to the fact that people have always needed accountants, they won’t die out anytime soon. However technology is changing the way firms are hired and work is done and many accounting firms are reaching the point where they need to get with the program or risk losing valuable clientele and being seen as no longer useful.

Many well-known accounting firms are dealing with clients who are older and don’t use social media themselves. While this allows for the excuse that since the clients don’t use social media, the firm doesn’t need it either, it ignored the very real benefits that proper use of social media campaigns can bring. Along with gaining new positive press improving the reach of your brand, it’s a great way to make sure you’re still hiring the best of the best. Millennials and the younger generations are more keyed into social media than any previous generation. Capturing their attention and making sure that they’re on your side is key towards building a brand that will not only sustain itself, but also be on the cutting edge. Mobile is here to stay; history will vindicate those who adapt it early and use it well.