MY BIGGEST FINANCIAL MISTAKE...👎👎👎
Happy Friday Readers!
Most millennial's start making money really young and end up making common mistakes that drastically affect their credit, savings and quality of life. I believe that balance is everything, this is the time of our lives where we get to be selfish and explore the world. Though we get to be adventurous, this does not mean we shouldn't be financially educated and prepared for the future.
Here are some common financial mistakes that millennial's make and some ways to combat them.
1) Increased credit card debt
This is a huge issue for young adults who get played into getting multiple credit cards and don't completely understand how damaging it can be to max out all your credit cards. Not only does this effect your credit but it leaves you in a deficient and can force you to pull out loans, live pay cheque to pay cheque and impact your future investments such as purchasing a home.
TIP: You only need one credit card, if you don't make more than $40k/ year you do not need a credit card more than $3k.
2) Emergency savings fund
We usually save for a trip or save to pay off debt but fail to save for emergencies. Try to have an emergency account (I try to have 2k in emergency funding) in case you end up stranded in another country, your car breaks down or something random comes up.
TIP: Save $20 every pay cheque for an emergency account (that's almost $500/year in emergency savings)
3) Spending at the rate of your earnings
Most millennial's get a raise or bonus and think "I need to up my spending". In situations where you start to make more money, don't up your lifestyle. Live the life you've always lived and watch your savings grow.
TIP: Try to save at least 25% of each pay cheque, when you start to make more increase your saving percentage NOT your spending.
Good luck,
-Coll
Most millennial's start making money really young and end up making common mistakes that drastically affect their credit, savings and quality of life. I believe that balance is everything, this is the time of our lives where we get to be selfish and explore the world. Though we get to be adventurous, this does not mean we shouldn't be financially educated and prepared for the future.Here are some common financial mistakes that millennial's make and some ways to combat them.
1) Increased credit card debt
This is a huge issue for young adults who get played into getting multiple credit cards and don't completely understand how damaging it can be to max out all your credit cards. Not only does this effect your credit but it leaves you in a deficient and can force you to pull out loans, live pay cheque to pay cheque and impact your future investments such as purchasing a home.
TIP: You only need one credit card, if you don't make more than $40k/ year you do not need a credit card more than $3k.
2) Emergency savings fund
We usually save for a trip or save to pay off debt but fail to save for emergencies. Try to have an emergency account (I try to have 2k in emergency funding) in case you end up stranded in another country, your car breaks down or something random comes up.
TIP: Save $20 every pay cheque for an emergency account (that's almost $500/year in emergency savings)
3) Spending at the rate of your earnings
Most millennial's get a raise or bonus and think "I need to up my spending". In situations where you start to make more money, don't up your lifestyle. Live the life you've always lived and watch your savings grow.
TIP: Try to save at least 25% of each pay cheque, when you start to make more increase your saving percentage NOT your spending.
Good luck,
-Coll