Your parents, or some wise adult may have told you to save for a rainy day. As a kid, you might have thought that was boring advice, but as an adult you may know how great that advice actually is. Over the decades, our economy goes through ebbs and flows of financial ups and downs. It’s possible that we may end up going through a recession again, and that can adversely effect a lot of peoples well being.
When the recession hit in 2008, a lot of people who were technically ‘wealthy’ were hit extremely hard, because they were living paycheck to paycheck, and just making payments on things to keep up the appearance of a certain lifestyle.
Doing this is a big no no. Know your limits, and don’t get caught up in the pressure to appear a certain way with cars, homes, etc. If you want to travel, do so with hard cash, not credit cards. Credit cards should only ever be used in an emergency, or responsibly to help you build credit.
It’s important to start saving while you have money. It’s not that you want to be negative and think that you might lose your job, but prep for the worst, so if that day comes you will not be at your worst!