In these trying times, making sure you have the money that you need can be a stressful experience.
From understanding your spending to maintaining a good credit score, there are ways for you to have financial success and have what you need.
Want to learn some great financial guidance tips? If you are worried about money, keep on reading for the best money guidance and recommendations for millennials.
Keep Track of Your Spending
Keeping track of what you spend may seem like a no-brainer, but it is way more complicated than you may think. Of course, you are aware of the big-spending you do throughout the week.
Large transactions, like groceries, bills, etc. are way simpler to keep track of. However, what about those micro-transactions for coffee, going out to eat food, and more?
It is totally okay to treat yourself once in a while; those tiny $5 and $10 transactions every day can add up.
Millennials, on average, spend upwards of $2,000/year on coffee shops. That’s a lot of lattes.
The key here is to budget out time for coffee shops, but not go too crazy. If you budget out, say, $25-$50 per month on coffee shops, you’ve already chopped that $2,000 to $300 or $600 a year, which is a way more reasonable number.
The best way to track your spending and may sure you are hitting your financial goals is to use a third-party app tracker or even an excel spreadsheet with all of your expenses.
Not only does it make it easier to see all of your bills and due dates right in front of you, but it makes you honest with yourself about the money you have and how much you can spend.
Don’t Rely on Credit Cards
Want some great financial advice? Do not rely too much on credit.
Not only are the interest rates too high, but most people use credit cards for things that are not always necessities.
The key to excellent credit is to use your credit cards and then pay it down to below 30% utilization. Some credit cards are ideal for redeeming points or cash back; but, you do not want to max them out.
Additionally, pay your bills on time, so you don’t acquire late fees on top of a high-interest rate. Having hefty credit card payments per month can hinder your savings account and draw you into an endless cycle of using your credit card to pay for things because you used your cash to pay off your credit.
Shop Around for Deals
One of the best financial guidance tips is to shop around for deals.
Whether it’s for groceries, clothes, or even box truck insurance, there are ways to make sure you are getting the best bang for your buck.
Being a savvy shopper can help you achieve a heftier savings account, and if you shop where the deals are, you can make sure you are not paying more for the same product elsewhere.
Best Financial Guidance
Though everyone’s financial situation looks different, these three tips can help you, and your fellow millennials get one step closer to a more secure financial future.
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