Everyone dreams of being comfortable with and in control of their finances. Take the initiative now to be wise with your money! The sooner you can establish healthy, beneficial habits with your funds, the sooner you will find yourself experiencing peace which comes with financial freedom.
Check out some of our basic financial habits every young adult should know.
1. Start Saving
Whether it’s $20 a month or $1,000, start building up your savings now. Set up an auto payment to transfer from your checking to your savings account every payday, once a month, or whenever works best for you. Help yourself stay motivated by writing down goals of specific things your saving for, such as a car, college, or even just a cool new pair of shoes. Many Americans have less than $1,000 saved for emergencies — set yourself apart by being mindful with saving up.
2. Track Your Spending
Keeping a close eye on your bills and expenses has a huge impact on maintaining peace of mind when it comes to your finances. There are plenty of free programs out there that will help you to keep track of all your monthly expenses. This will also prove to be extremely helpful in pinpointing areas where you may be overspending and will aid in setting goals to spend less. It will also help you to notice very quickly if your account has been hacked or compromised.
3. Build Credit Now
There are quite a few conflicting opinions when it comes to using a credit card, but that doesn’t mean it’s something which should be feared. “When handled wisely, implementing credit card usage can safely and effectively raise your credit score,” said Jade Beckman, vice president of consumer loans at Mountain America Credit Union. Use your Visa Platinum for the essentials, like gas and groceries, and pay it back as soon as you can. When possible, try and pay more than the minimum required payment. It will do wonders for your FICO score!
4. Learn To Say No
We know it can be fun to stop at the coffee shop on your way to work. We know that you’re dying to get that new blouse you’ve seen your favorite boutique and it’s tempting to join your friends for that weekend trip to the coast. However, learning to say no to the things in life that aren’t necessary will prove to save a ton of money. This isn’t to say that you can never buy fancy coffee or go on road trips-it just means that it’s something that you need to conscientiously safe for and work toward!
5. Give Yourself An Allowance
If you never give yourself some wiggle room, you’re sure to burst. As you’re tracking your expenses, do some math and consider how much you can set aside each day, month or week for your personal “fun money”. This can be used for whatever you want, and even if the amount is small, it can be something that you look forward to with no guilt, and a way for you to responsibly treat yourself for being smart with your money.
6. Pack A Lunch From Home
A quick bite to eat on your way to work and eating out for lunch, while seemingly minuscule and insignificant, will definitely add up and eat into your budget. Be conscientious about your grocery shopping so that you’re buying things that will be easy to take with you to eat while you’re out and about. You may also want to give meal planning a shot! Having something yummy to grab as you leave for the day will definitely help keep you from the local fast food spot.
7. Make Goals And Tell Your Mom
Setting monetary goals for yourself is a must for staying financially stable. Consider what you want your financial focus to be for the next six to twelve months, and then tell your mom, your best friend, your desk mate, or your journal. This will do wonders in keeping you motivated and accountable.
Frugal Financial Stability
You’re all set! Keep in mind that you won’t be an expert on day one, and asking for help can take you far. Your financial stability is something that will follow you throughout your entire life, so resolve to set goals and make plans now to establish the habits necessary to be successful.
