If you are currently struggling with personal finances right now, then you’re not alone. According to the Mind Over Money survey conducted by Capital One and the Decision Lab, over 70% of Americans are suffering from mental illnesses related to their personal finances. Yes, as Americans most of us were required to take personal finance, but several years later Millennials are proving that this required class might not be as beneficial as they once thought. Not to worry, though! True Sky Credit Union is dedicated to helping not just our members, but the community as a whole become better educated about finances. That’s why we have compiled a list of 5 tips to improve personal finances for Millennials, so keep reading!
5 Tips to Improve Personal Finances
1. Look for Supplemental Income
Having two or more jobs just to get by with the bare necessities is unfortunately the norm this year for the general public due to those uncontrollable factors, like inflation. The best way to save enough money is to have a second job where the entire purpose of it is to put that paycheck into a savings account. It doesn’t have to be another job where you directly serve the community like being a server, or something along those lines. If you like pets, offer to pet sit. Have a nice car? Uber or Lyft! Are you crafty? Create your own store on Etsy or like sites. There are so many easy ways to make a little extra money a month to build your savings.
2. Commit to Saving
Let’s face it, when you’re living paycheck to paycheck it makes saving even harder. The first step, though, is creating an accurate budget. That way you are able to pinpoint exactly what all of your money is going to. Also in your budget always include a set amount of money each month for activities so that you don’t have to miss out on any fun. A general rule of thumb is to save 10-15% of your income a month. We also recommend creating an emergency fund and between 3-6 months of living expenses. We get that this is easier said than done, but you never know what will happen in this crazy world we live in, it’s always better to be safe than sorry.
3. Manage Your Debt
Ask a handful of Millennials and we guarantee that every single one of them has at least a little bit of debt. Although we can’t pay off all of the Millennials’ debt (wouldn’t that be somethin’) we are knowledgeable in the best ways to manage your debt in a healthy way. The first step is to focus on paying off the loans that have the highest interest rates; the same goes for credit card debt. To learn more about how to better manage your debt, give us a call to discuss your specific situation.
4. Start Investing Early
Repeat after us: Invest Invest Invest. After you have created your emergency fund and 3-6 months living expenses, you need to start thinking about retirement. Thinking about your future might come along with the stressor that is personal finances, but you need to have your own back in the future when you no longer want to work. There are different companies, like Vanguard, that offer retirement plans if your employer doesn’t offer any. The younger you start investing, the better off you’ll be in retirement.
5. Shape Your Credit Score
Although having multiple credit cards could potentially help build your credit score, there are many hidden layers to having credit cards. For example, being late with your payments has a HUGE negative impact on your credit score. Now this might not seem like that big of a deal if you’re not looking to buy a car or a house any time soon. However, a poor credit score is what makes lenders not trust you, making you pay higher interest rates for cars, and in some cases, landlords and/or employers may not hire or rent to you. Don’t let your credit card control your life.
Improve Personal Finances With True Sky Credit Union
We get it, improving personal finances isn’t easy, it takes a lot of self discipline, and improvements aren’t instant. You’re trying, and that’s what counts. Here at True Sky Credit Union we strive to better our communities as a whole. That’s why we offer several different services like checking and savings accounts, auto loans, home loans, personal loans, as well as resources to help you financially. To become a member, visit our website, give us a call, or stop by 1 of our 11 locations throughout Oklahoma. We look forward to helping you improve your personal finances.