7 Financial Tips Every Millennial Needs To Know

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Young adults are very much prone to money mistakes that can lead to poor money management and even debt. There are many reasons why many millennials are living paycheck to paycheck, one of which is the lack of financial literacy taught in schools.

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A huge number of millennials are either in their 20s or 30s, meaning they are starting to make significant financial decisions that can make or break their future. To help you better achieve your financial goals and get a better grip of managing your finance, we’ve gathered some of the best money tips straight from the experts.

Start By Writing Down Your Financial Goal

It is not enough that you know you want to stop living with debts here and there. You must have solid financial goals for the long and short term which as specific, realistic and very much attainable. Writing down your long-term and short term goals will help you create a plan on how to achieve them.

Automate Your Savings

Most young adults have a single bank account. Make sure to open a separate account for your savings. Next, automate a percentage of your income to go straight into your savings account each month. This way, you’re treating your savings as an expense, which means you’re obliged to save monthly.

Learn How To Write Checks The Right Way

Even with the benefits that online payment options have to offer, every millennial still need to learn how to write a check the right way. Many businesses, big and small, still prefer check payments over cash and online payments. By using a check to pay for your bills, rent and other financial obligations, you can easily monitor your expenditures.

Recommended Read: Why You Still Need Paper Checks

List Out Expenses And Separate Needs From Wants

One of the reasons why millennials tend to spend more than what they can afford is because of mindless and compulsive spending. By listing out your expenses, you’ll realize which items you paid for are the ones you need or not.

Create A Budget And Use It

Creating a budget is easy. The tricky part is sticking to it. Divide your monthly budget from your savings, your needs, and your wants. The 50/30/20 Budgeting Rule is a good starting point for beginners.

Know What A Good And Bad Debt Is

Not all debts are bad. Good debts are those that can generate long-term income and even can grow in value. Bad Debts, on the other hand, are investments made that can quickly lose in value. An example of good debt is student loans used to pay for higher education as it can land you better-paying jobs in the future. Credit cards, on the other hand, is a bad debt because of their high-interest fees and the temptation they can bring to you.

Recommended Read: How Debt Works: Good Debt vs. Bad Debt

Pay Off Your Debts

Be it a student loan, credit card debt or personal loans, …