For some young people, financial struggles are due to not bringing in enough money through income diversification. However, for many others in the working class, financial struggles emanate from not spending money wisely or from spending more money than we make. According to the Times magazine, nearly 73% of Americans die in debt owing to the excessive use of credit cards to finance purchases. Most young people in the working class of developing countries such as Ghana also fall into debt through debt-financed private cars, mortgages, and hire purchase of consumer appliances among others. Financial literacy is indispensable in the quest of young people to attain financial independence. Presented below are some strategies that young people can adopt in order to start spending prudently so as to stay out of debt and attain financial independence. Track Your Finances - Before you can start figuring out how to spend money more wisely, you first need to understand where your money is going. Make a budget and track both your income and your expenses. Once you know where your money is going, you can start looking for opportunities where it could be better spent. After you start tracking your finances, you can begin looking for habits that may be draining your budget. These habits could include expensive hobbies, eating out too much, spending too much money on clothing, or any number of other financial drains. Once you figure out which habits are eating up large portions of your income, you can then evaluate whether or not these habits are really necessary. Many of us would be surprised at the percentage of our monthly incomes we spend on things like transportation (as a result of regular use of UBER and taxis instead of trotro), data and call credit (the bundle trap), regularly hanging out with friends, eating outside on regular basis among others. Tracking your finances will help you know the areas that drain your funds so you can re-prioritize your spending. Think About the Long-Term Benefits and Drawbacks of Purchases - Far too many purchases of young people are impulse decisions (unplanned purchases). While this is fine when it’s a GHc1 chocolate bar at the Accra mall, it becomes a problem for larger purchases. Before you buy something, think about how it will affect you in the future. How long is it going to last? Is it going to put you in debt? Is the value you will get out of it over its lifetime worth the cost? Is it the lowest price you can get that item for? These are questions you can use to determine if something is really worth buying. In your purchases, seek value for money. Do not always buy from the shopping mall for the fun of it when you can get the same value at a much cheaper price at the regular market. To get value for money for any item you buy, be particular about getting the lowest price possible, especially for items that take a significant proportion of your income. Minimize Credit Purchases - Only buy things on credit if you can afford to pay them off within a short period of time or if it is something you cannot do without. Credit purchases could be a hindrance to your finances by paying more for products/services than you would have paid in cash as a result of the interest charges. If it becomes necessary for you to borrow or buy something on credit, do well to settle the debt quickly to avoid incurring huge interest charges. If you don’t pay off your debts in time, the interest accrued can quickly spiral out of control and put you under financial stress. Learn to Value Savings Over Products - Some people are naturally good at saving money and draw enjoyment from growing their wealth. For others, money is something that is spent the moment it reaches their hands, and anything else feels like a wasted opportunity. If you find yourself in the second group of people, try to adopt a mentality that values savings over products. In the end, money invested or money saved will almost always benefit your life more than money spent on products that will wear out or become uninteresting with the passage of time. Stop Trying to Impress People - The average young person out of the desire to impress peers spends far too much money merely trying to maintain an image. From fancy cars to brand-name clothing. Much of the things we spend money on have more to do with impressing others than it does to do with purchasing something that we actually want and enjoy. However, “keeping up with the Joneses” is an expensive and unnecessary pursuit. Buy the things that you yourself enjoy and don’t fall prey to the feeling that you have to spend money in order to impress other people. Start Investing Early - Spending your money wisely isn’t just about avoiding unnecessary purchases; it also requires you to take the money that you save and put it towards things that will help you reach your financial goals. With that in mind, there’s no such thing as starting investing too early or investing too little. No matter how young (or old) you are or how little money you have to invest, putting your money into quality investment instruments that will grow in value as time goes on is always a prudent use of your income and a critical step toward the land of financial freedom.