Tuesday, 18 April 2017

Media In Ghana Must Help Young Ghanaian Millennials To Learn About Personal Finance

The more responsible sections of the Ghanaian media ought to take it upon themselves to teach ordinary people in our country about personal finance.

In cases where in-house media professionals with deep knowleadge of the subject  are unavailable, media entities here ought to make their media platforms available to experts from Ghana's financial services sector, for example,  on a regular basis for that purpose.

That can also help them retain some of their dwindling audiences and readerships, after all.

As an older generation journalist, one has always felt that one of the best things one can do for the mostly brilliant young people one comes across, is to guide them to reputable online websites where they  can gain access to good content on the subject of personal finance, which can teach them the rudiments of personal finance.

The good thing about offering such  positive guidance for ambitious, clever and harworking  young  Ghanaian millennials,  is that they are invariably generous-spirited enough to point their friends to the same sources for content that teaches personal finance too, once they discover them.

For the benefit of this blog's many bright young Ghanaian millennial readers, today, we are posting a culled article about personal finance from Investopeadia.com.

Please read on:

"If you had to give a young adult one piece of financial advice, what would it be?

I am 22 years old and have developed a vast interest in personal finance and the economy. What would be the most critical piece of advice you would give to someone my age who has just entered his first career? I have lofty expectations for myself and my future, therefore, I want maximize my income and value as much as possible.
Personal Finance, Starting Out
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4 days ago
Eric Wylie
Wylie, Eric
College Station, TX
94% of people found this answer helpful

1) Start saving NOW! Utilize your company's 401(k) if applicable; if not, contribute to an IRA. Time is your friend, and the time value of money shows that the earlier you start, the better. Save at least 10% of your income, give away 10%, and live off of the rest. Invest in a diversified portfolio of domestic and international equities.

2) As part of the above, don't forget to also build up a stockpile of emergency money, this amount doesn't necessarily need to be some % of your income, but an amount that helps you sleep well at night, whatever that means to you. But it should at least be enough to cover the cost of new tires or some other potential unexpected expense.

3) Stay out of debt. Regarding home ownership, there can be benefits from buying a house, but there are a lot of expenses as well. And mortgage interest isn't necessarily deductible depending on your itemized expenses. You are given a standard deduction of $6,350 (double that if you are married), so don't buy into the "get a mortgage; it's deductible" hype that lenders (and real estate agents) like to say. Once you are a little older and more settled, then consider a house. Regarding other debt, looking rich by buying expensive cars and technology doesn't make you rich. It's not what you spend, but what you DON'T spend that makes you wealthy.
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6 days ago
Eric Dostal
Dostal, Eric
New York, NY
93% of people found this answer helpful

I will give you three pieces of advice. First, pay yourself first. Before you spend any money on food, clothing, housing, entertainment, vacations, whatever you can think of, be sure you have put aside something for yourself. It is best if you set up an automatic transfer that corresponds to your paycheck deposit. Even if the amount is small, get into the habit of saving regularly and consistently at the beginning of your career. This habit will reap huge dividends for you in the future.

Second, invest your savings prudently. As your savings balance grows, many individuals will come to you with ideas of how to invest your money for the future. Be sure to take a critical eye to all of these proposals. Ask as many questions as you can. Decipher how the person you are speaking with is paid. Ask them to explain their underlying assumptions, go beyond the materials presented to you and dig into the details. Ask if they invest their own money in this way, and if the answer is no, ask why. Many individuals are highly experienced in personal finance and have the tools and the knowledge to guide you on the right path. It is your responsibility make sure that the person you are working with is one of these individuals.

Third, appreciate your greatest asset, time. Right now, the most powerful force you have going for you is time. The dollars you invest today will work and grow for you for the rest of your life. Those dollars will earn more dollars, which will, in turn, earn more and more. This phenomenon, known as compound growth, is extremely powerful, but it takes time. Know that this is a lengthy process, do not get discouraged, and enjoy the ride.

Good luck!
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5 days ago
Gary Duell
Duell, Gary
Happy Valley, OR
88% of people found this answer helpful

Always spend less than you make.
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5 days ago
Elyse Foster
Foster, Elyse
Boulder, CO
70% of people found this answer helpful

You are wise to ask this question and to be thinking about your future. I have a few absolutes that have served me well and also many young clients of our firm.

- Develop a plan and modify it periodically, reaching goals is rewarding and will encourage you to stick with your plan.

- Pay yourself first. You are worth it! A target of 10% of your gross income to begin is a good goal.

- Know yourself. Will you take the time to learn about investing and develop a plan? If not, seek advice.

- Take the time to enjoy your money and successes. Don't hesitate to travel, donate, and invest in yourself along the way. Planning and investing is a lifelong pursuit, not a sprint.
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5 days ago
Dan Timotic
Timotic, Dan
Oakbrook Terrace, IL
67% of people found this answer helpful

As a young adult, you have a number of advantages. My advice to you would be to create a budget, understand your spending, and begin a plan to invest for your future. The sooner you begin saving for your retirement, the higher the probability you will achieve and potentially exceed your retirement expectations. Time is on your side right now. The later you begin saving for your retirement, the more you will need to put away and sometimes your needs later in life won't allow for the necessary increases in savings.
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End of culled Investopedia.com article about personal finance for young people.

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