Feeling financially overwhelmed? You’re not alone. Financial stress may be unavoidable, but there are steps that you can take to help you prosper financially.
Do I have to mention that 50% of American households cannot afford an unexpected bill of $500 or more, or only 35% of credit card holders pay off their balance each month?
Or do I need to let you know that by missing a credit card payment, or maxing out your card, can lead to a reduction in your credit score, which means a more expensive lease agreement or personal loan agreement when going to borrow money?
Or do I mention that when most people earn more money, they simply upgrade what they have or attain another bill through another subscription etc., meaning that the extra money that they have earned is negated?
So, regardless of earnings, the same result will always occur at the end of the month.
So given all these statistics how can millennials fair in a looming prospect of being financially successful?
Save First, and Then Spend
If you are feeling financially screwed you need to focus on money saving ideas.
Pay yourself first. When I first heard this phrase, I actually thought, how do I pay myself? What with?
Then I realized that it does not really mean pay yourself first, but save first and then spend.
At some point in time in our lives, odds are is that we have been short of money. Whether it be at the grocery store, traveling, or being on vacation.
In that case, what did we do? We simply made smarter choices. You made do with some things and not others. Think about how your decisions changed when you were short of money.
When you know you have less money to spend, you make smarter choices, because you have to think about the best way to spend that money.
Each dollar has a value and you can only spend it once. I would recommend using that same mentality even when you aren’t short on cash.
Savings is Key
When you get paid, I suggest putting 10% away immediately. You will soon get used to having less disposable income each month, but guess what, you will be making smarter decisions, which is a win-win.
(If for example you get paid $1000 per month)
By the end of the year, you have a month’s salary in the bank, you no longer are one of the 50% “have not” statistics and you are making smarter choices each month. As you get paid more, you are able to save more.
Once you learn how to save money, your savings are now there for a deposit on a house, a car, an unexpected vacation, further tuition or whatever priority comes your way.
Like any habit, the good habits are always the hardest to start – no sugar in your coffee etc., but with a little perseverance, you will reap the rewards.