While most people would consider themselves pretty financially savvy, I'd say that can be attributed to the fact that no wants to admit they're bad with money. As cash rules almost every decision we make, it can be tough to swallow when we haven’t held ourselves to the best standard.
Here are a few financial tips for you to use.
Learn how to use a credit card the right 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.
Build your credit
Your credit is the number-one key you have to financial freedom, so utilize it wisely. As CreditRepair notes, there are numerous ways you can start on this, as it’s never too early to start thinking about your credit.
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.
Hold off on buying a car (even if you can afford it)
While a lot of folks tend to follow the 20 percent rule (that is, only dedicate 20 percent of your income to a monthly payment on a car), even if you can afford that, it’s still not your best investment.
First, 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
Stop spending so much money on socializing
Like most millennials, I too have fallen victim to spending money for what I consider “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.
Plus, as millennials spend nearly 44 percent of their food budget on going out, cutting back can be an excellent way to save money. So stay in your parents' basement as long as possible.