You may be wondering how a 20-year-old can teach you about personal financing, but if there’s one thing I have learned, it is that saving money ain’t easy. The majority of your income probably goes towards necessities: food, bills, taxes, insurance, etc. Whatever amount of money is left will is likely to be spent on those shoes you have wanted to buy for a long time, that festival your friends been talking about or the vacation that you so desperately need to get away from you job. If you recognize yourself in this situation, then I would like to offer you some tips and tricks on how to make the most out of your financial situation.

Tip #1: Cut unnecessary expenses

This tip might seem obvious, but unnecessary expenses often seem a lot more ‘necessary’ then they actually are. Think for example about the amount of money you spend on food. Perhaps you buy lunch every day at work instead of packing it yourself or you get a get Starbucks coffee each morning. These might seem like very mundane purchases, but the costs of the items add up and the $3 you spend on that cup of coffee plus the $4 you pay for your sandwich at work quickly add up. On a monthly basis this could easily cost you over $150 whereas preparing some lunch drinking your coffee at home might cost you half of that. It’s an easy way to cut down on a lot of your expenses.

Tip #2: Create passive income streams

This is where matters get more complicated. Passive income streams are essentially ways for you to make money without really having to do much for it. The Internet offers a lot of opportunities for you to publish content that can generate money, either by people directly buying the content that you created or by streaming or using it. A great example of passive income is the revenue generated with YouTube videos. Anyone can create YouTube videos, the trick is to create videos about something that you are very good at or passionate about. Each time that people view your videos they will watch ads before, during, or after that video and you will get paid based on the amount of ads seen by viewers. You can essentially create content and once that content is put out there you won’t have to do anything. Also, posting on Steemit could become a way for you to generate passive income ;)

Tip #3: Invest in yourself

This is arguably the most important tip. Knowledge is power and teaching yourself new skills and knowledge can help you further your possibilities for financial gain. By expanding your marketable qualities, you are can develop new ways to earn money. Learning about new things and broadening your horizon can help bring you more financial well-being, but it may even be fulfilling on a more spiritual or philosophical level. Investing in yourself may offer the greatest return. This tip might sound a bit abstract, but gaining knowledge and developing new skills can never hurt.

Constructive criticism is always welcome! 