We are navigating through unusual times. There seems to be a disconnect between wall street and main street. Every day you look at the market, it seems to be making new highs while the unemployment line gets longer.
7 personal finance handy tips for millennial’s
- Keep track of your credit score. Credit scores are between 300 – 850. The higher the score the better you are. It is best to know your credit score. Sign up for free at credit karma.
- Make a budget. No one likes surprises. A budget involves knowing your income and your expenditures. Make a list of all income you receive on a monthly basis. Now list your fixed costs such as: utilities, rent, grocery, credit cards, insurance etc. now list all the expenses that if something happened you can live without such as cell phone bill or cable bill, gym memberships etc. Now look at your variable costs such as eating out, gifts and vacations. You have to subtract your costs from your income. Now that you know how much you spend, make a goal and how much you want to save to achieve it.
- Build an emergency fund with 6 months of paychecks. An emergency fund is important for those unexpected events. Every month put some money aside and save it. You will be surprised as to how quickly you can build such a fund.
- Know your debt-to-income ratio. Always know how much you owe. How much you owe will directly impact your income. Work on paying off those high debt.
- Invest for the long term. You want to take advantage if your company offers a 401K to do long term investing. You can also invest in a retirement fund. If you can afford it take a look at Janus Herderson 40. If you have $1000 you can start a retirement fund. If you are able to afford $2500 you can start a mutual fund. Also another option is American Century Ultra (same investment choices) and we can also check out Vanguard funds (Total stock market) $3000 minimum
- Pay yourself first. Remember you pay yourself before anyone else.
- Ask for help. There is nothing wrong with seeking help if you feel overwhelmed.
Making the right choices now will help you stay on track. Do not get discouraged. Keep your eyes on the prize and remember to set goals.