People often ask whether they are doing the right things with their money. As an advisor, I’m here to share what I’ve seen work over and over, but the choices are always yours.
Think about it in real-world terms: Why wait for a financial problem to become a crisis before you act?
Imagine you buy a brand-new smartphone. Do you wait for it to crack before protecting it? Of course not.
You add a case, a screen protector, maybe even insurance before leaving the store. That’s being proactive, not reactive. And the same mindset pays off with your finances.
Now think about building a house. You may know how to use a hammer and drill and understand a little about how walls go up. But would you really take on building an entire house if you weren’t trained in construction, electrical work, plumbing, roofing, and design? Probably not. A house needs a blueprint. Your financial life does too.
Managing money isn’t just about knowing what stocks and bonds are, it’s about putting the pieces together correctly. Let’s walk through Five Financial Tips for Young Adults for 2026.
1. Find a Financial Advisor
- Use your parents’ advisor or find someone they trust.
- Research and choose someone who aligns with your goals.
- A good advisor helps you avoid costly mistakes and builds your financial confidence.
2. Pay Yourself
Saving money is important, and it’s never too early.
How do I pay myself?
- Create a budget.
- Track where each dollar goes. This will help you realize what you can save.
If you see where your money goes, you are more likely to be able to do something about it. Most people never realize how much they spend at Scooters, Kwik Star, Starbucks, and other places for items they do not need. Consider taking it easy with the expensive coffees.
3. Budget, Track, and Manage Debt
Create a budget
- Track every dollar in and out to see spending patterns.
- Watch discretionary expenses like daily coffee, takeout, or subscription services.
Manage student loans and other debt
- Explore updated repayment plans or forgiveness programs for federal loans.
- Pay strategically to reduce interest and free up cash flow.
- Keep total debt payments under 40% of take-home pay.
Example:
If you have credit card debt:
- Balance: 1,000 dollars
- Interest rate: around 20 percent
- Minimum payment: 100 dollars per month
Result:
- It will take you about one year to pay it off
- You will pay about 1,200 dollars to pay off your 1,000 dollar purchase
- That is a 20 percent increase
Would you ever go to a store that was advertising a 20 percent price increase and think you were getting a deal? Not likely.
Debt can snowball quickly if unmanaged. Minimum payments alone can take years to eliminate debt, and interest will cost much more than the original purchase.
Pro Tip: If you find yourself in a debt hole, stop digging. Make a plan to climb out strategically.
4. Build a Good Credit Score.
- A good score saves money by lowering interest rates.
- Bad credit is costly; lenders often charge higher rates.
- Avoid discretionary purchases on credit that you can’t pay off immediately.
5. Save!
- Even small contributions to a 401(k) or Roth IRA make a big difference over time.
- Take advantage of employer matches—they’re free money.
- Use tools like personal finance apps to automate contributions and track growth.
We all make mistakes, but most are avoidable. Working with someone who knows how to help you build your financial home leaves you far better off than trying to do it alone.
A good advisor helps you avoid costly errors and delayed side effects like less sleep, more stress, fewer social outings, and less joy. No prescription needed.
Take the Next Step:
Contact me at mtemple@acceladvantage.com or 319-352-2880, and I’d be happy to help.