Everyone makes financial mistakes from time to time, so there’s nothing to feel ashamed of if or when it happens to you. In fact, for millennials, so much of the financial climate has changed. We are in a situation where we need to approach money differently from older generations because of various factors like inflation, wages, and more; that is why we are here to give you some financial tips.
As we go through life, we learn a lot of important lessons the hard way. And, as we all know, it is not always fun. While some mistakes are unavoidable, there are helpful steps you can follow along the way–especially when it comes to money.
In the sphere of finance, there are explicit ways that you can be smart with money. Thus, it is a great idea to educate yourself on ways that you can avoid making any financial mistakes. This will definitely up your financial security and help you in the future. Keep reading if you’re ready to find out more tips within the world of finance:
Financial Tips Basics: Start Investing Now
Investment sounds like a super intimidating thing to a lot of millennials, and it can seem scary to some. But. you can actually get started investing your money today extremely easily. Even if you don’t have a lot of money to invest upfront, don’t worry! Many other young adults are in the exact same boat.
Online resources such as “Acorns” or “Stash” are great for those of us starting out with very little.
Additionally, these websites even give you $5 up front if you use someone’s link to join. So, grab a friend and start investing! You can also check out our 5 Useful Tips on Investing for Beginners if you’re dipping your toe in for the first time.
On the Acorns website, you can easily choose how risky, moderate, or safe you want your portfolio to be. And, even better, the application uses robotic technology to make investments for you. This is a great feature, as those who specialize in investing are essentially at your fingertips.
On another note, you can set up weekly or monthly transfers if you would like. The website also allows for your money to round up to the nearest dollar when you make purchases with your card. By doing this, you are subconsciously adding your spare change into your future investments.
Save On Car Insurance
On Insure.com, you can check out the best prices from car insurance companies to make sure you’re getting the best deal. During the coronavirus pandemic, many of us have been driving less, as we are not going out as much. But, despite this, most of us are still spending relatively the same amount on car insurance.
There is no need for you to pay crazy amounts when now is the time to save money and strategize for future gains.
Some insurance companies provide you with the chance to lower your monthly deductible. If you are looking for a more personalized rate, devices like Progressive’s ‘Snapshot’ will monitor your driving and adjust your rate accordingly. These devices take into account how much you drive and the times you are driving. So, if you do not drive too much or too far, definitely consider signing up for one of these monitoring devices.
Secret Financial Tips: Use Your Credit Card
A lot of people will tell you that credits cards are scary and dangerous things. For a lot of us, we associate credit cards with endless pits of debt. However, this is just not the case in most scenarios. Rather, using your credit card is actually great if you are using it right. If you stay on top of your purchases, using a credit card can actually help you in the future. In using your card now, you can improve your credit score, and ultimately be able to make bigger purchases (such as buying a house).
The secret to properly using your credit card is to treat it like cash.
The people who tell you to be scared of credit cards have likely made giant purchases that they could no longer afford and racked up a ton of debt. But, if you make purchases that you know you can pay off right away- you can simply pay them off on time! This is a great way to build credit and can help demystify credit cards for you.
Don’t have a credit card yet? Check out How to Get a Credit Card and Build Credit in Your 20s.
Start an Emergency Fund
Finally, and perhaps most obviously, we recommend saving up some of your money. Having an emergency fund is one of the best financial tips you can find as a young adult. If the past year has taught us anything, it is the importance of having an emergency fund that you can use in challenging circumstances. It can seem intimidating to build an emergency fund, especially if you are not really making much money.
But, it is important to remember that every individual has to start somewhere. With help from Betterment, you can set up automatic transfers into an emergency fund account. This is a great option because then you will be less tempted to dip into it. Even better, you may even forget about it for a while. If you are ready to the wire for money, you can start small with monthly $5-10 transfers and then adjust them according to your needs.
Budgeting is a major component of financial success, so it is definitely in your best interest to monitor your spending. You can create a budget to see where all of your money is going each month. This will also help you to cut down on unnecessary costs. For more information, check out How to Create a Budget if Your Salary is Unpredictable.
For many young adults, navigating the financial world is hard. Unfortunately, the wealth levels in the United States vary widely. Thus, we are here to help all young adults with all different economic statuses. Whether you have money or not, these financial tips can help you take control of your resources and become the best, smartest version of you. If you start taking control of your finances now, we promise your future self will be thankful.
If you are interested in more finance based articles, check out these suggestions below.
