A 2019 study concluded that on average, Americans have about $90,460 in debt. This debt includes everything from credit cards to mortgages to student loan debt.
Gen X has the highest debt ringing in at $135,841. Debt has increased the fastest for the millennial generation. Their debt has increased by 58% in 4 years, from $49,722 in 2015 to $78,396 in 2019.
Personal finances are an important part of life but they can be a difficult area to manage. Keep reading to learn some personal finance tips you’ll want to hear about.
Always Have a Budget
The first thing that should be on your list of personal finance strategies is creating a budget. It’s easy to overspend if you don’t set a limit for yourself.
There are many online resources you can use to help you create a budget for your monthly expenses, this way you won’t wonder where all your money went.
Having a budget will also make tracking your spending simple. When you make a physical list of where your money goes you’ll begin to make better decisions for your financial future.
Pay Your Credit Cards
Credit cards can be a double-edged sword for many people. While they’re great at helping establish the credit that you need, they can also lead to a lot of debt if not handled properly.
You should pay off your credit cards as soon as possible. This will minimize your debt and prevent you from paying high-interest rates.
Falling behind on credit card payments or establishing a lot of debt from credit cards can lead to bad credit. This can make getting important loans more difficult.
When applying for a loan, bad credit can make things more difficult but it’s not impossible to get the loan you need. Bad credit help is available and many available options can help you establish the financial security you’ve always wanted.
Set Aside Emergency Money
This next tip is crucial to achieving financial stability. Setting aside an emergency fund can help ensure that when an emergency arises you’ll have the means necessary to take care of yourself and your family.
This fund should get a percentage of every paycheck. Keeping this money in a money market account will ensure that the fund continues to grow.
Saving Is Crucial
While an emergency fund is a type of savings, having a separate savings account is crucial to your financial success. If you’re living paycheck to paycheck this task might seem difficult but saving even a few dollars per paycheck will begin to add up.
Whether you’re saving for your education or a car, putting some money away can help you make those purchases you didn’t think were possible.
Invest in Your Health
Health insurance is an important part of financial stability. Investing in a good plan will protect you if faced with a medical issue. Taking care of your physical health can help prevent expensive medical care in the future too.
Important Personal Finance Tips
Financial stability is an important part of life. If you follow the personal finance tips listed above you’ll be on your way to the financial freedom you’ve always wanted. Check out some of our other blogs to learn more.