The millennial generation is hitting their early twenties to their late 30s right now, which means millennials are starting their working and professional lives. The time period of your 20s and 30s is a very important time from a financial standpoint. This is a time period where the financial decisions you make will impact you going forward. Here are a few ways to start taking control of your financing.
Get Rid of Credit Card Debt
The worst debt that you can carry is credit card debt. Credit card debt carries extremely high interest rates, and there is no graduated payment plans or deferments like you can get with student loans. Credit card debt is the most unforgiving type of debt and the first that you should tackle.
Once you pay off your credit cards, use them responsibly. For example, you could use a credit card to pay your bills and pay off the card every month. If you are not able to use your credit cards in a responsible manner, cut them up and shut your cards down. Credit cards can be a good way to build your credit score, but only if you are capable of using them in a responsible manner. Otherwise, they can ruin you financially.
Change How You Spend Your Money
Next, change the way that you spend your money. For example, you could follow the 50-30-20 rule, where 50% of your income goes towards your household needs, 30% goes towards things you want in life, and 20% goes towards future savings.
This doesn't have to be the way you spend your money, but you need to move away from living paycheck-to-paycheck and start saving and investing for your future. Saving and investing in your 20s and 30s is worth it.
Use Easy Savings Methods
The truth is that it is easier to save and invest for the millennial generation than for those that came before. There are a host of apps you can use that round up all your purchases, taking that amount and moving it to your savings. There are apps that take a set dollar amount from your checking account every day and save it for you. There are tons of apps that help you invest small amounts of money, as well. On top of that, it is easy to set up automatic retirement withdrawals from your paycheck. There are so many systems you can use to make sure you are saving money. Make sure you are taking advantage of these systems.
It is time for you to embrace your finances as you enter your 20s and 30s. Get rid of credit card debt, change how you spend your money, and start saving. Also, start talking about finances with your friends and family, and encourage one another to make smart financial decisions. If you want more information about financial security, you can reach out to a company such as Millennial Money Minute for help.