Personal Finance Basics for Millennials
February 18, 2021 | Louis Tully
Personal finance basics have been a hot topic for the last few years and one subgroup it has gained considerable popularity are the millennials.
Understandable, considering millennials are probably the generation that has had to deal with more financial instability than their parents and grandparents ever had to – among them pay stagnation, increasing debt, and multiple financial crises.
If you’re one of the millennials who’ve been incentivized to take better control of their money to build a better financial future.
Personal Finance Basics
1. You Need to Track Your Expenses
Personal finance basics starts with learning about your money – namely where it’s going. Take a good look at your bank statements. What portion of your income are you spending on essentials? Which expenses could you cut? Which could be re-adjusted?
Money management is all about intentional spending.
2. You Need to Start Budgeting
Budget is the #1 tool when it comes to money management and remembering personal finance basics. It will ensure you stay in a reasonable frame when spending it don’t overindulge – even when you can afford it.
Divide your budget into 3 parts when setting up:
- Savings – automating them is the easiest way to save money. Even 5% of your paycheck is enough to start with, as long as you develop the habit and then work your way up.
- Needs – your fixed bills (like rent), but also gas and groceries, which you’ll have to adjust for, to ensure you’re not overspending.
- Wants – give yourself a reasonable allowance to have fun once in a while. You shouldn’t be spending money frivolously, but depriving yourself is just going to end up in the financial equivalent of binging later, so try to find balance.
3. Are You in Debt? Pay It Off
If you’re saddled with a credit card, car payments, or – most commonly – student loans, adopt either debt snowball or debt avalanche methods and go scorch earth to pay them off.
If you’re having budgeting for your needs due to high monthly payments, find a way to cut them down until at least part of it is paid off. Partial debt consolidation could work for you (when you consolidate some of your debt so you can throw more money at other ones to pay them off faster), so look into that.
4. Prioritize Short-Term Savings
While saving money for vacations or other leisure is enticing, another part of personal finance basics would be that your first priority should be an emergency fund. Most financial advisers concur that you should have around 6 months’ worth of your expenses saved – i.e. it should be enough money to be able to cover everything from rent to debt payments even in the worst-case scenario (like job loss).
After that, you can concentrate on sinking funds (saving money for specific goals like celebrations, vacations, large purchases, etc.), and building long-term wealth.
5. Make a Plan for Long-Term Savings
Budgeting is supposed to be a life-long activity. Many tend to let up when their emergency fund is full and start overspending again.
Don’t let this be you if you wish to achieve long-term financial security.
Instead, follow these personal finance basics and keep increasing your savings by switching to maxing out your 401K company match, investing in mutual funds, as well as maxing out your (Roth) IRA.
Why Is An Emergency Fund So Important?
Starting to invest right away might seem alluring for those who wish to build wealth, but without a solid base it could all come crumbling down – and an emergency fund is that solid base. It ensures you’re never caught off guard if faced with unexpected expenses like a car breakdown, home repairs, or doctor visits – problems that need to be taken care of right away.
If you’ve yet to build an emergency fund, which would be one of our most pressing personal finance basics, you would need to get money from other avenues, like taking out a title loan.
Why a Title Loan?
Title loans are fast and easy to acquire: as long as you’re 18 and your car title is in your name, you can apply even if your credit score is bad or non-existent altogether – Utah Title Loans won’t be worrying about your credit history.
The title loan process is simple and straightforward, taking on average 30-45 minutes, and you’ll be accommodated every step of the way – all types of income are acceptable and the lender will do their best to set the payment schedule that works for you.
How Do I Apply for Utah Title Loans Online?
- Go to the website and fill out the online form.
- Wait for the loan representative to contact you and set up a meeting at a convenient location – the meeting can take place at the shop, or you could work out another location with the representative if the store location doesn’t work for you.
- You’ll need to take your car, your lien-free car title (in your name), and your government-issued ID to the meeting for a brief inspection.
- Wait for the loan representative to assess everything and determine if you qualify for the loan.
- Get approved and get the cash you qualified for the same day.
As a millennial, it is possible, in your position that you have more leeway to follow these personal finance basics easier than someone in a generation ahead of you. Get ahead of your money by following these tips. You can even grab some fast car title loan cash online if you find yourself in a financial jam. The representatives at Utah Title Loans Inc. are standing by to help you today.