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throughout my teenage years in early adulthood I've made so many financial mistakes because I had no guidance I wish I knew some of the things I'm going to share with you today because they would have made all the difference in how I handle money I joined the army straight out of high school looking for financial stability and I regret to say that I wasted a lot of that hard-earned money in today's video I'm sharing my financial advice for young adults consider this your intro into money management and personal finance if you're new to my channel welcome I post twice a week on topics ranging from frugal living saving money and planning your best life right away we're gonna start with number one open a bank account whether you're looking for a place to deposit your paychecks or just looking for a little independence having a bank account is the first step in learning money management if you're still living at home or are financially dependent on your parents or legal guardian you can open a joint bank account with them you still be the main account holder but this will allow your parents to still deposit money directly to you if you're in high school or college look for bank accounts that are specifically made for students oftentimes these accounts have little to no fees and they offer great benefits just make sure you get acquainted with all the perks your bank has to offer overdraft fees and any penalties for using other network ATMs right after that you're going to set your automated savings when opening your checking account also ask about a savings account in how to set your automated savings by doing that you can set a specific amount you want transfer from your checking accounts into your savings every month a good starting point will be 10% of your monthly earnings so for example if you earn $1,000 a month your automated savings will be a hundred I have a ton of videos on saving money to help you get started make sure to check those out after this video you're gonna learn how to budget calculate your monthly income by adding all the money you receive consistently every single month this will include the monthly allowance you received from your parents earnings from a part-time job or any type of income you received from student aid student loans or any other grants even if you're just a teenager earning $200 a month it is important that you know what amount that is and how to best make it work for you now you're gonna list your expenses by categories bills such as your cell phone plan utilities groceries and rent if you have to pay for your own place set a spending limit for the fun stuff I'm talking at your outings with friends beauty products monthly subscriptions as a general rule something that can help you figure out how much you should be setting aside for each category is to follow the 50 30 20 rule the 50 30 20 rule is a budgeting tool used to measure how to plan your monthly income it simply states that fifty percent of your monthly income should be used on your needs that is your housing your bills in your debt thirty percent should be allocated for your wants that is going to be your shopping you're going out to eat your monthly subscriptions your makeup and 20 percent of your monthly earnings should be saved well this is a really good rule to follow most eighteen year olds and young adults do not have the same financial responsibilities as grown adults and they do not make enough money to save twenty percent of their income this rule can be easily adjusted for your particular situation if let's say you don't have as many bills or debt or you don't even have to worry about paying rent then that means you have extra money to save so what the rule says fifty thirty twenty you might be able to do something like thirty thirty forty meaning you're gonna allocate thirty percent of your earnings for your needs thirty percent for the fun stuff and then safe forty percent in the same goes for those of you who are having a hard time saving money each month maybe you have a lot of financial responsibilities let's say your responsibilities take up 60% of your earnings then you just use 20% for the fun stuff instead of 30 and that will allow you to still be able to save 20% get a credit card credit cards gets such a bad rep but when use responsibly credit cards can be of great use to build credit and to help you save money when you enroll in a rewards program I recently had to update my computer situation I usually shoot in 4k and my laptop has a really hard time processing those files so I knew it was time to invest in an iMac as my youtube channel keeps growing and because I use credit cards responsibly I was able to buy a brand new iMac and only pay for half because I had a crew so many reward points by using my credit card so ultimately I got a $2,000 computer for half the price the key to using credit cards responsibly is pretty simple only use credit cards to pay for things you can't afford I'll give you another example I have a credit card but I only use it to pay rent because I already know that I can afford rent I used my credit card to pay for my rent and then I turn around and pay it off within a couple of days so essentially I'm only using my credit card to accumulate points and rewards this allows me not only to earn the rewards and points that paid for my computer but also to maintain a high credit score the best credit cards for young adults are going to be the ones that have little to no annual fees they have some sort of cashback or reward system in the ones that are going to be easily obtained with little to no credit the chase freedom unlimited offers 1.5% cash back on every purchase and they offer a hundred and fifty dollar bonus when you spend five hundred dollars in the first three months after signing at number six do not buy so much clothes when I was 18 years old I was earning for my big-girl job which was the army and all I wanted to do was buy clothes I didn't care about anything else in the world but looking fly so I'm going to tell you do not spend most of your money on clothes you have an advantage over me and that is the wealth of information and inspiration that you can find online with the help of videos right here on youtube you can learn how to adapt a more minimal personal style and cultivate that personal style around pieces that are going to last you a very long time that are going to make you and help you feel your best as you're setting on this exciting journey to personal finance I encourage you to develop a wardrobe that is center around what actually makes you feel good and comfortable and not around social media aesthetics next you're going to learn how to diversify your streams of income it is never too early to start thinking and building multiple sources of income we can not just rely on one source of income to survive because that can be taken away at any given moment i freelance throughout my entire student career I went to school for photography and filmmaking for those of you who might not know in as soon as I bought my first camera I set out to earn money if you're in school learning a trade such as graphic design photography makeup web design you might be able to start getting clients right now or you can find other ways to make money by monetizing your hobby becoming a virtual assistant using social media during my last year of film school I took up makeup artistry and that is one of those traits that you don't need a certification you don't need any type of formal education and you can charge people 75 dollars an hour just to beat their face is definitely worth looking into especially if you are someone that personally already loves makeup use cash to pay for fun things you're young and it's perfectly okay for you to want to have some fun right you have the rest of your life to worry about bills and being responsible I mean I want you to be responsible but it's okay for you to have fun setting aside cash to pay for fun things such as outing with your friends going out to concerts and any other forms of entertainment is going to help you stay on track with your financial goals if you only use cash right you leave your card at home then you're not going to overspend which brings me to number 9 do not spend all of your free time with people who are carelessly spending as you are learning about personal finance it is just as important to become mindful of the company you keep if you're spending all of your free time with people whose financial goals do not align with yours it is going to be that much harder to stick to your plans number 10 become a smart shopper always always if your student asks for the student discount do not pay full price for clothing always shop the sale rack plan your groceries plan your meals before you even go into the store and get in the habit of buying news you can buy use bike you can buy used car used electronics even used accessories number 11 move out only when you're ready do not feel the pressure to move out of your parents house because your peers are doing it only move out when you're financially ready and if you're going to college or simply you just want to be on your own consider having one or multiple roommates if you are going to college and must take out student loans please consider the following understand your loan how much are you borrowing and what are the interest rates it is so important that you pay close attention to your interest rate its effects as a variable a fixed interest rate is going to stay the same while a variable one is going to change over time this will affect the total amount you are borrowing consider paying off interest while you still in school to cut down the cost of your loan and avoid borrowing more than you need next and equally as important wait to have children racial and social economical disparities contribute to more teenage pregnancies among Latino and black women I grew up in an economically disadvantaged area in Puerto Rico and I saw it firsthand a year after I graduated high school most of the people that I knew were parents this is a complex issue and one that bears great economic impact on young women who a lot of times are not able to complete a college education due to the high demands of motherhood number fourteen do not let social media influence you social media can negatively affect the way we spend by encouraging imitation with all the aspirational content we see and by making us feel like we're missing out you can counteract that by on following accounts that promote mindless spending or that plays a high emphasis on consumerism number fifteen educate yourself on investing I get requests for videos on investing all the time but unfortunately I am currently not in the position to give any kind of investing advice however there are plenty of resources right here on YouTube that can help you learn more about investing and get you started I know learning about personal finance can be really intimidating especially for young people but it can also be exciting the fact that you are so young and already taking an interest in your personal finance is working in your favor you have a lifetime ahead of you to plan for the life you want to live and the fact that you're starting now means you are most likely to succeed in that is all I have for today thank you so much for watching I hope you enjoyed this video if you did please don't forget to give me a thumbs up and subscribe if you're new you can follow me on Instagram to connect with me on a more personal level please take care I'll see you next time