There will be things in life that you wish you had learned earlier, particularly how to handle your personal finances. If you had known about them earlier on in life, you could have done things different and perhaps some of the financial problems that haunt you today could have been avoided. Here are four tips that are important to know as early as possible.

Start saving earlier

There are many times in life that you will need to spend large amounts of money, either for an emergency or to invest. Savings will be very important during these times as you will be able to afford these inevitable costs without struggling financially or landing yourself in huge amounts of debt. Starting a saving plan as early as your first pay cheque will not only help you to form a savings habit but will also ensure that you always have some cash available when you run into financial emergencies.

You need to start setting aside a percentage of your earnings every month; experts recommend at least ten percent. Within a short time, you’ll have enough money to have a solid emergency fund or invest some money. If you did this when you started earning, you should have enough, not only for investments but also to allow you retire comfortably.

Take advantage of unexpected cash

Sometimes in your life, you will get unexpected cash in form of gifts, bonuses, dividends and more. In most cases, this money ends up being used in to treat yourself, buy luxurious products, some of which you may not need. If you use this cash to acquire something of value, you won’t regret it later. A good idea is to use it to pay off high interest debt, doing this will save you money in the long run.

You could also use it to buy an asset of value. Unexpected cash will only come once in a blue moon, so do not waste it on luxurious items. Invest it in shares, pay off that stubborn debt and you will have made a positive difference to your finances. This is a lesson that many people wish they had known, they regret having blown a chance to make a difference in their lives.

Budgeting and sticking to it

Budgeting is not effective unless you do it right. Many people buy based on their instincts and later, find they have spent more than they wished to. If you start making a budget the first time you earn a pay cheque and continue with this habit, you’ll avoid impulse buying and other habits which put you into financial trouble. Learning to budget and sticking to the plan from the onset makes you financially disciplined, it will save you money, which can be put to good use.

It isn’t too late! Follow these tips and you will see a difference in your finances.