Are you a millennial feeling overwhelmed trying to manage your finances? Are you getting the most for your money? Financial education is not usually taught in schools and they don’t do a great job preparing their graduates to manage their finances. So when college is over and real life begins, it can be a bit overwhelming and it’s easy to fall into debt and other financial problems.
Most millennials are currently in their 20s and 30s, a time when many young people are ready to make major financial decisions in their lives, such as home ownership, long-term investment activities, etc. If you’re currently part of this generation, here’s a crash course in what you need to do to improve your financial well-being:
Take financial courses online
Since most young adults are tech-savvy, it is suggested that you take some basic online courses on economics, accounting, and any other financial subject that might be of interest to you.
embrace technology
When it comes to managing your money, there’s probably an app. To help you do that. These apps can categorize your spending clothes and help you manage your spending. This information can help you save money each month and then transfer that money directly into your savings. Online financial apps can help you budget for your lifestyle and ultimately change your net worth.
When it comes to managing your money, there’s probably an app that can help you do it. Mobile apps like Clarity Money can help you track any clothing waste. Digit and Stash can recommend where you can save money each month and then transfer that money directly into your savings. Online financial apps can help you budget for your lifestyle and ultimately change your net worth.
Review your current bank accounts
Are you paying fees? If so, what for? Monthly maintenance and minimum balance fees should never be a fee on your statement. Free checking accounts are available, especially at credit unions, and these accounts will help you keep more of your own money in your pockets. So don’t settle for anything else.
Build your credit and understand the impact of your credit score
At first, you may only have a student loan or credit card on your credit report. But now is the time to start building your credit. Ask your credit union about a Credit Builder Loan to help boost your credit. And if you already have some active loans, be sure to make your payments on time every month. You’ll need that good credit history when you want to make big purchases in the future, like a car, rent an apartment, or get a mortgage on your first home.
It’s also important to know that if you plan to open a business, your personal credit may be the determining factor in your ability to access the necessary working capital.
Pay off debt tactically
While we’re on the subject of credit, many young adults have credit cards with very high interest rates. Focus on paying off those debts first! If possible, transfer those balances to a lower rate credit card. It’s much easier to pay off debt when more goes toward the balance.
Track everything to get your complete financial picture
Just as businesses manage their cash flow, individuals must do the same by tracking their income, expenses, assets, and liabilities. There are many online tools to help you, such as Mint, Quicken, and Personal Capital.
Create an emergency fund
Unplanned, unfair or unfortunate events can happen in the blink of an eye. You may be in a car accident, have unforeseen medical expenses, or lose your job. That’s why it’s important for everyone to have an emergency fund. The best way is to set up an automatic savings plan in which you first pay yourself by depositing a portion of your paycheck into a separate savings account. If you forget it’s there, you won’t be tempted to spend it.
Create a long-term savings strategy
An emergency fund is a short-term strategy, but you can’t forget the big picture either. Does your employer offer a 401(k) match? If so, be sure to take advantage of that opportunity. It is fundamentally free money, and it is an investment in your future.
Get yourself a financial mentor
Although there is an overabundance of information and applications on the Internet to help you with your financial security, it is much better to choose your brain and ask a trusted friend or colleague questions. Their relevant insights will most likely be tailored to your specific requirements.
Use these financial tips listed above to get your finances on track while you’re still young. You have a bright future ahead of you, so start now and stick with it. Your financial well-being will thank you! Although these tips are aimed at millennials, they are useful for all ages.