It takes years of experience to manage your money right, but you can always depend on the Finance Genie to provide you with great tips for a solid financial future!
The following overview contains the common poor money habits of Americans under 30. So, if you find yourself in this category, make sure you check each of these for a better financial future!
Waiting for More Investment Money
Investing takes time. Unfortunately, many people wait until they have a large amount of money to invest, missing out on some great opportunities at the same time.
Contrary to popular belief, you do not need a lot of funds to make an investment. There are many online apps that allow you to invest with a minimal amount of cash; this includes Acorns. So, next time you believe you don’t have enough to invest, think again!
Spending All Your Wages
When you want a solid financial future, you need to be smart and save some money along the way. Instead of spending all your wages when it comes in, be sure to put some money on the side too.
Not Having a Savings Goal
Many Americans state they want to save money, but they don’t have an actual savings goal. Determine how much you want to save, for what and for how long to turn your savings ideas into reality.
Paying your bills late can have a devastating impact on your credit score; this could have a negative influence on your borrowing power. You could also encounter additional fees, which could have a direct impact on your current financial situation. Therefore, it is essential to plan your finances meticulously and pay your bills on time!
Paying Minimum Amounts on Your Credit Card
Most people will pay the minimum on their credit card balance, because they believe this option is most attractive to them when they have a tight budget. However, the opposite is true, because the minimum will cost you a fortune long-term.
Instead of paying the minimum on your credit cards, pay the amount if full instead. However, if you are struggling making the payments in full, it may be best to get rid of your credit card.
Not Knowing Spending Habits
Everyone has expenses, so it is a normal part of life. Not knowing where you are spending money can cause you problems though, because you could still be paying for subscriptions you are no longer using. Therefore, if you are looking to save money, make sure you have a proper view of your expenditures.
Touching the Savings
Even if you have some money saved and are in dire need of some cash, it is essential not to touch your savings. Many Americans are proud when they finally put some cash away, but eventually turn to these savings because of poor money management. Savings should therefore not be seen as a safety blanket, but as your future.
Insurance is one of those things you believe you don’t need when you’re young, but this is 100% wrong. Nobody can predict what the future brings, so you could encounter an accident or an unforeseen illness that will have a drastic impact on your finances when you don’t have the money. Therefore, always have insurance in place, whether it is health insurance, home insurance or life insurance
Putting a Low Priority on High Interest Debt
High-interest debt can be devastating for your future, so this type of debt should always be prioritized If not, you could be paying a lot more in the long run.
Impressing Your Friends
When you move out of your parents home and get your own place, it is so tempting to impress your friends with your new found freedom. Friends are often the ones that determine where you eat, what you buy and even how you invest. Unfortunately, trying the impress your friends is never a good idea if you wish to obtain financial success. Do your own research and look at your spending habits in a neutral way to ensure best practice.
Ignoring Clear Issues
Americans encounter serious financial difficulties can prefer putting their head in the sand. Whether it is a low cash balance in the bank or problems with credit card score, these are all problems that tend to be ignored by most Americans.
By ignoring clear issues, you could make things worse. Instead, try to tackle the problems head on to guarantee a solid financial future!