Do you find yourself broke more often than not? If so, you are not alone – and you may not be entirely to blame. Currently, only 17 of the 50 states in the US require high school students to take a course in personal finance. Isn’t that crazy? Finding the slope of a line is great and all, but wouldn’t it be more practical if your math teacher taught you lessons like how to create a budget?
Some students are fortunate enough to have parents who work with them on these skills, but the sad truth is that many older adults are not much better at managing their finances. According to Freedom Financial, only about one-third of adults over the age of 50 would pass a financial literacy test.
Despite a shaky start, the good news is that there are steps you can take you improve your financial situation and stop living paycheck to paycheck. Freedom Financial offers these tips for millennials:
- Regularly Monitor Your Finances
Even if you get a sinking feeling in the pit of your stomach when you check your bank account or get a new credit card statement, look at it anyway. Ignoring your financial situation only makes it worse. Sometimes the hardest part of solving a problem is to admit in the first place that you have one. But, once that part is over, you can start taking steps to fix it.
Freedom Financial recommends that you get into a habit of monitoring your bank account daily, create a budget, and track your spending. There are numerous apps available to help you.
- Find Easy Ways to Cut Spending
Once you’ve begun monitoring your money and your spending, you’ll be able to see patterns and trends in your spending. Now that you see these spending habits, look for simple ways to cut back. Freedom Financial suggests that you start with an easy change that doesn’t interrupt your lifestyle – and celebrate your small success!
If giving up that all-important cup of java in the morning is too hard, don’t do it…even if it is all over the internet that this is something you should give up. Maybe there is something else that is less painful for you. Are you too busy to watch tv most days? Then drop the cable company. Keep your Wi-Fi and watch streaming videos of your favorite shows. You’ll save a ton of money.
- Work with a Financial Planner
Believe it or not, you don’t have to be rich to hire a financial planner. According to Freedom Financial, this is a big misconception about the industry. Now, you may feel a little embarrassed at your current financial state, but with the help of a knowledgeable professional, you can turn your situation around, which is worth it. And there are plenty of financial planners that would be happy to help you start out on the right foot. After all, it is in their best interest too if you do become financially successful.
So, don’t be afraid to seek help. And don’t write it off as too expensive. In the long run, it could be the best investment that you make.
- Avoid the Credit Cards
If having a credit card is too tempting – and you spend more than what you have, then you simply shouldn’t have one. You can live without a credit card. And you can even build credit without a credit card. So, if you haven’t opened any yet, don’t. Perhaps later on, once you’ve established some other good financial habits such as living within your means, you can get a credit card for the rewards or airline miles, but not while you are broke.
Of course, you may already be in credit card debt – which is part of the reason that you are strapped financially. The good news is that you are young and you can recover from credit card debt. Freedom Financial offers a variety of programs through our different companies that over 400,000 of our customers have enrolled in to eliminate their burdensome debt. Contact us online to learn more about our custom-tailored debt resolution programs.