Financial Tips I wish I knew when I was young

Easier said than done right? Granted… but that’s why getting into good habits while you’re young is so imperative. We’ve  compiled a few tips we all wish we knew when we were much younger. Following these could lend you a better path and help you save quite a bit as well.

1.Learning how to use a credit card the correct way.

This is something that we probably should’ve listened to the wisdom of our elders more, but then again, sometimes it’s best to learn on your own. As creditcard.com notes, while younger generations tend to utilize their credit for clothes, entertainment and gas, older generations use it for travel and major repairs. Granted, having a budget and sticking to it with a credit card can be a good way to build your score, but using your card like boomers is an effective strategy.

2. Report your rent to credit bureaus.

Although a relatively new development in the credit reporting world, according to NerdWallet, nearly every major credit bureau allows you to report your rent. Although less than 1 percent of credit files contain rental information, this can increase your credit score tremendously.

3. Avoid inquiring until you know for sure.

Credit inquiries can negatively impact your score up to 5%, which is especially damaging to young people. The rule of thumb here is to shop around a bit when it comes to buying something that could need to be purchased on credit.

4. Build your credit.

Your credit is the number-one key you have to financial freedom, so utilize it wisely. There are numerous ways you can start on this, as it’s never too early to start thinking about your credit. A Small credit account can be a start.

5. You don’t have to be rich to invest.

There’s a big notion that only those with a lot of money should invest in stocks or mutual funds. In fact, a recent study by Bankrate showed that just one in threemillennials are investing. Even though you most likely won’t be rich overnight, it’s never a bad idea to use investments as a way of saving. Some good sources to check out are Acorns and Stash.

6. Save, Save, Save and save enough for rainy days.

You never know when you will have rainy days and its important that when you finally experience them, you have something to fall back on., we all know that money can be drained pretty quick in the event of an accident or unexpected event. Try to set aside a little more from each pay check, as you never know when it might come in handy.

7. Hold off on buying a car (even if you can afford it).

One thing I wish I knew when I was younger was that the cars are depreciating assets, meaning as soon as you drive off the lot, it’s automatically worth less than what you paid. Additionally, as you never know what’s going to happen with your car (whether it’s new or old), the unexpected maintenance or expenses are going to cost you regardless. So from us to you, we advise you hold off on unnecessary expenses.

8. Beware of predatory lending.

Predatory lenders can potentially destroy your financial status, with the average interest rate clocking in 50%. In short, this is the quickest path to bankruptcy, so if you’re looking for some extra financial help, exhaust all your resources, as well as possibly talk to a financial advisor.

9. Stop being a social butterfly if you cant afford it….Yet.

Spending so much much on socialising is definitely not advise, like most millennials, I am sure we have fallen victim to spending money for what’s considered “the short term.” You know, things like going out to eat or going to shows, which for the time being is great, but as you get older, you realize this money is well spent other places. You go out and enjoy but before you know it, you barely making it through the month.

10. It’s harder to get yourself out of a hole than it is to get in one.

It’s no secret that getting into debt is relatively easy unfortunately getting yourself-out is not soo easy. Being in debt is expensive, and as such, you should put a lot of consideration into what you incur before pulling the trigger. Perhaps one of the best pieces of financial advice I ever heard tackles this subject very well: if the debt you’re incurring isn’t helping you make money, is it really worth taking on?

 We all need money to make it through the journey of live. Be sure to make the right decisions while you still you. We are here for that.

Main Image: The Law of Attraction

Main Image: thelaw of attraction