Millennials, You Should Be Thinking About This

Why is it that most people don’t think about building wealth at a young age? If you ask me, the earlier you start making good financial decisions the better life will be for you later on. I understand some of us aren’t brought up in households that talk about finances and why it is important, but as we get older we have to do due diligence and do our own research to equip us with the tools to become successful people.

Okay, I get it! A lot of craziness goes on in your 20s, good and bad. During this time you are trying to find yourself, you may be constantly making mistakes, and a bunch of other things I won’t mention in this post. Most people are trying to figure out if they should go to school, what career path to take, who to take with them and the list goes on……..Dang on sure not your financial future!

TRUST ME, I AM NOT PERFECT!

I can attest to saying it is a fun and wild period, but not an easy one so we tend to make decisions based on what is happening now; not what can happen later. I just want you to remember that all the things we experience in our 20s can and will affect how the rest of our life will be especially when it comes to our finances. Make sure these decisions do not have life long effects on your life.

Here are my top three suggestions that I feel we should learn and talk more about:

SAVING

I understand this is the last thing you want to hear in your 20s especially when you may be living pay check to pay check but it is imperative to save! According to new data from the Federal Reserve Board, 40% of U.S adults don’t have enough savings to cover a $400 emergency. Now that is sad! I am not telling you to put half your check into your savings but at-least a-little every-time you get paid will surely take you a long way when you actually need it.

BUILDING YOUR CREDIT

If you ever want to purchase a home, car, or start your own business you need good credit. AGAIN! You may not be thinking about these things this second but if you want to access a high credit line, a low car note on a brand new car, special deals etc. start building now. A lot of lenders and businesses will look up your credit to determine if they want to do business with you and that’s all they have to go by. Furthermore, it shows that you are a responsible person, would you believe me if I said having a good credit score 650+ is worth more than having $10,000 in cash?

INVESTING

I use to think I didn’t need to start investing until I was older, boy was I wrong. Believe it or not, the younger you start the better because the longer the investments get to accrue money over time, the more money you can potentially earn.

I am sure you know these things but if you don’t, I am here to help:

• DO NOT run up your credit card, use less than 30% of the limit. If you want to use your card to make an “irrational” purchase at least try to make sure you have half of what it cost, already available to you.

• DO set up autopay higher than your min. amount due and making extra payments on a credit card can boost your credit score.
• DO NOT keep applying for credit cards to keep up with the Joneses on Instagram; or just because you don’t have the money the second you want something.
• Set an amount that you put to the side for your savings every pay period or monthly. Even if it’s something small, it will add up.
• You should have more than one savings account. One you don’t touch PERIOD and an emergency fund that you have to dab into when something unexpected happens.

Life is full of financial decisions, lets make sure we are making the right ones.

Your Virtual Bestie,