It’s never too early to start saving money. While retirement may seem far away, it’s always a good idea to start saving for a rainy day emergency fund. However, most young adults don’t have adequate financial education, since it’s not always taught in high school or in higher education courses. So here are five tips and tricks that can help any young adult become fiscally responsible in no time at all.

 

1. Know where your money goes

 

 

The first rule of finance is to know where your money goes and how much of your income you have to spend on mandatory and frivolous expenses. One of the best things you can do is to write a list of everything you spend your money on for an entire month. This should include everything from grabbing a quick coffee every morning to your rent payment—everything you use cash or credit for needs to be accounted for. After a month, segregate every purchase into a “mandatory” or a “frivolous” category and see how much you’re actually spending and where you can cut back.

 

2. Consider the future

 

 

To be completely financially secure and independent in the future, consider investing. Choosing investments is a great option for your financial security as it’s really the gift that keeps on giving—all you have to do is put your savings in an investment account, and let it grow! Don’t touch it, and you’ll be able to reap a lot of benefits when you cash out. There are lots of alternative investment opportunities that you can research, such as Yieldstreet. Check out a third-party Yieldstreet review to see what other people are saying, and compare what they offer to other, more traditional investment opportunities. You may be surprised to find that investing is easier than you imagined.

 

3. Apply for a credit card

 

 

While this may not seem like the best financial advice, hear us out. Good credit history shows creditors that you’re trustworthy when you apply for a long-term loan such as a car payment or a mortgage, so its best to start building your credit early. But don’t overextend yourself—you can get a credit card with a low limit, and just put everyday purchases on there and pay them off every month. A good rule of thumb is to only spend about 30-percent of your available credit, so as long as you stay under that number, your credit score will be in a good place.

 

4. Dress to impress

 

 

Building your finances, of course, means maintaining a steady job! With that in mind, a professional wardrobe is always a great investment as it shows you’re a young professional ready to take on the world! There are plenty of men and womens business casual options that will help you show off your sense of style while still sticking to the office dress code. Work clothes don’t have to be boring, so feel free to experiment and invest in some really great pieces. And remember, when you look pulled together, you’ll feel more confident and ready to face each workday with a positive outlook.

 

5. Follow the 50/30/20 rule

 

 

You’ll want to follow the 50/30/20 rule when it comes to each paycheck. This means you spend 50-percent of your income (after taxes) on necessities such as rent, food, and bills, 30-percent on “extra” lifestyle choices such as going out to eat, shopping for clothes, and entertainment, and 20-percent should go towards your future in a retirement or savings fund. When you stick to this form of budgeting, it’s even easier to save and spend without going overboard.

 

With these tips in mind, you will soon be on your way to a lifetime of financial success and security!