For many young men and women in their 20s, saving a large sum of money feels like an impossibility. Likewise, the idea of planning ahead may also feel like a considerable challenge. However, we all know that financial literacy and financial stability must be sought early and intentionally.
Individuals with financial competence can experience the freedoms and joys of comfort, meaning they can have disposable income and make choices that won’t leave them in peril. It’s important to not only be careful about the way you spend but the way you save. After all, there are many misconceptions about spending, savings, and managing funds.
For anyone who made it out of their 20s, there are likely a dozen things they wish they’d learned a bit sooner, which could have set them up for great success in the future.
- Utilizing The Credit Card The Right Way | Unfortunately, younger people tend to use their credit cards for apparel and entertainment purposes, while older people tend to use their credit cards to cover the cost of significant repairs and travel. Using your credit card responsibly is a great way to build our credit score and demonstrate financial responsibility.
- Reporting Rent To The Credit Bureaus | Less than 1 percent of credit files contain rental information, according to NerdWallet. Communicating rental information will boost individual credit scores.
- Monitor Your Credit| CreditKarma, CreditSesame, and CreditRepair are just three of several resources used by the public to help them achieve financial freedom. These websites offer tips and free monitoring.
- Investing With Very Little| For a long time, it seemed that only wealthy people could invest in stocks and mutual funds. Acorns, Stockpile, and Stash are three available apps, enabling success at income level. According to Bankrate, just one in three millennials, but that could increase that to the development of more investment tools.
- Be Careful About Inquiries | Be careful when applying for credit cards. If you aren’t mindful, you can quickly ruin your credit.
- Store Away Money | Seventy-two percent of Millennials have less than $1,000 saved away, according to GoBankingRates. It’s important to get into the habit of setting apart money with each paycheck.
There a few other things you may consider doing, including being mindful of predatory lending; spending less money when socializing, and watching your debt as it accrues.
If you have any other thoughts about unloading debt and better managing your finances, please share.