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Financial Tips For Millennials

Good Financial Tips For Millennials are really just a few common sense behavior changes.

Starting a journey in life is very exciting and offers a world of endless possibilities and potentials. What can be more exciting and exhilarating than charting your course through life, anticipating the unknown opportunities in the world, and waking up every day knowing that you’re the captain of your own destiny?

Quite frankly any change that has a profound and positive impact on one’s life is exhilarating, being full of unknowns, hopes and challenges. Few things can be embraced with more hope and anticipation than inventing yourself for the first time or reinventing yourself even if it’s done again and again.

(Here’s the But you’ve been waiting for…)

But, there’s absolutely nothing worse than sitting at your home, looking out the window and wondering about all the people that are out running around, going out to eat or doing things with friends, and then turning to look at a table that’s cluttered with unpaid bills. Yuck!

Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this. –Dave Ramsey

While others’ are out having fun (we always project to think that everyone’s just out running around, spending money and laughing), here you are stuck with a load of bills facing you, and you start to think that a good nap may be the best thing for you. Then another nap, then another and another.

Financial Tips For Millennials aren’t that hard to find on the internet, there’s tons of sites that have good ideas, but what are the core tips that are always necessary no matter what the situation may be? Well that’s why I’ve written Financial Tips For Millennials, to sift through the good and enumerate only the necessary.

Following are some ideas that really need to be addressed and implemented if you want to live a life that isn’t chained to a stack of bills. Believe me, there are few things worse than knowing that you can’t do something because of something you’ve already done (like buy things you know you didn’t need) or because of something you didn’t do.

Financial Tips For Millennials is about freedom and the very first thing you need to understand is…

First: If You Don’t Spend It Then It Means More Freedom For You

This is a mindset that is absolutely, without a doubt, the single most important thing you’ll ever need to know.

savingsAt the outset we have to kick out the thinking that continually keeps you looking at other people who have more money that you do. The operative word is continually. If your mind is always on those that simply, by virtue of birth, inheritance, hard work or dumb luck (doubtful), and who appear to be going through life doing whatever they jolly well want to, then you’re simply trying to keep up with the Jones’.

And trust me, when this mindset consumes you eventually you’ll come to find, after much wasted time and effort, that the Jones’ aren’t your heroes after all. And time and money spent can’t be regained.

It’s nice to have a goal for some time in the future, but for now, what I’m trying to emphasize is developing habits that focus on you and your life irrespective of others. You must learn to be your own best friend and financial advisor.

Now, it’s very important also to understand that I’m not trying to inspire a poverty mentality or the type of thinking that says “Well, this is good enough for me.” Not at all, in fact this point is just the opposite of that. Whenever your mind is free to think and work creatively, when it’s not encumbered and weighed down with “another cutoff notice,” then you can be about the business of improving your overall life and achieving your goals unimpeded.

Also, when you’re living a sensible lifestyle and something major does happen (car transmission goes out, the whole care goes out and you need to have cash on hand for a cab), there really is something totally cool you want to do or go to, or whatever it may be, if you haven’t tossed away hard earned money on something that you either could’ve waited for or done without altogether, then you can operate and do what you want to without concern.

That’s freedom!

Second: Use Credit Cards Sparingly

Your credit score is something you should value very highly.

It’s good to have some credit cards, their proper use will raise your credit score and your credit use tells employers and credit cardlenders about your basic character. Credit cards are fine, especially if you use the ones that give you cash back at the end of a cycle or year.

The most important thing you can do for yourself is to fix a monthly budget, use your cards if necessary, then Pay Them Off at the end of the month. Many cards, if your balance is too high, automatically raise your interest rate which is just throwing money away.

Below is a link to Cark Howard’s site which will guide you in shopping for the best credit card deals.

How To Shop For Credit Cards

Third: Always Prepare For Emergencies

Believe me please when I tell you that emergencies do happen. You may get sick and have to take unpaid time off, you may have to take a trip suddenly, you may have to go out on an occasion with other employees and you don’t want to be embarrassed when the bill comes due, vehicle problems and on and on.

Start with a small goal to save a percentage of your monthly income and when you can do so. Start with something like 3%debt of your net income, then after a period of time raise it slowly to 5% or 7%. Ten percent is the goal for savings that you’re striving for.

In a very uncertain world it’s extremely comforting to look at your savings account balance and know that if the unexpected happens you’re prepared for it or if an opportunity arises such as a really good investment or a down payment is required for a home, then you’re covered.

Savings really helps you sleep well at night but more importantly it raises your own opinion of yourself.

Fourth: Invest In Your Own Future

One of the most profitable things one can do is to invest in oneself by increasing your skills.

Going to a university, a community college, a technical school or even an online course where you can earn a diploma or certificate will obviously make you a more viable commodity in a world where competition is strong and excellent skills are demanded.financial tips

Get into a mindset of learning and never ever stop learning. The more you know, the more you are and the more valuable your presence will be to an employer. If your desire is to work for yourself, then continual learning is an absolute requirement.

One of the most valuable subjects to learn is mathematics. Virtually everything a person endeavors to do will at some time require a common sense understanding of math and accounting. But in any case always remember that you are the most valuable commodity you possess and to invest in your own education and skillsets is a must do.

These basic Financial Tips For Millennials will guide you into financial freedom and will prompt the development of other good traits that will last a lifetime. Take care regarding your credit use and your savings practices and one day you’ll look back and be very grateful that you exercised the control and discipline early in life.

Below are some great sites that will increase your financial skills.

Clark Howard

Dave Ramsey

Nerd Wallet

Wall Street Journal To Personal Finance

Basic Guide To Investing

 

 

 

 

 

 

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