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millenial money

Millennial Money Mistakes

It is in our 20s and 30s that money management is easiest because we are just starting out. We pay the basic rent, car payment, insurance, and food.

We usually have enough left to invest wisely, most times in a 401(k) plan that may or may not be met by our employers. However, there are also basic mistakes we all make managing our money.

Money management isn’t an exact science. There are so many ways to invest our money, that we are paralyzed by confusion.

Add to those the three mistakes everyone makes with their money, and you have a group of people with no way to finance their retirement.

1. Not Having A Clue

Youth is all about discovery. It’s all about having the latest shiny new toys. It’s about trying new things, getting new jobs, living in the greatest apartments, driving the latest and greatest new cars.

budgeting

Youth hangs out at Starbucks, and eats at the local bistro. All these things take money, and youth reaches its 30s with no idea how their money disappeared.

Making a plan and a budget is vital to avoiding this mistake. Planning for retirement needs to begin in the 20s.

Set a goal, save for it, and invest wisely for it. The melt-down in 2008 made fear of investing understandable. However, it only takes a few dollars to begin to make money for the long haul.

Set aside ten to twenty dollars each week for investments. It really is that simple to begin investing.

2. Not Mastering Cash Flow

Making a budget is not fun. It’s sobering to see the income in one column and the outflow in another. Going through receipts is also confusing.

Did you really eat out that much last week? Did you really pay that much for that fashionable winter coat? Surely you didn’t need those new Jimmy Choo shoes?

Keep your receipts for one week. If the outflow column of your budget creeps too close to the income column, then cut a few things. Cash lying around puts gas in the car and buys medicine when you fall ill.

Buy two pizzas and freeze one for later consumption. You can get the same winter coat at thrift stores (sometimes with the tags still on it.) You get the idea.

3. Investing Properly

Once the first two mistakes are corrected, the third will come easily. It doesn’t matter if you’re making millennial money mistakes or any age money mistakes.

If you have a plan and a budget and can track your spending, then investing becomes simple.

A comparison of stock brokers will tell you minimum balances (most are zero,) brokerage fees (most are less than ten dollars,) and any special offers. All of them are top-name, gilt-edged traders. You will feel secure knowing they’re the best.

If you don’t know in what to invest, think about your life. Do you drive a car? Do you eat?

The clothing you wear, the electronics you use, the companies that produce the natural remedies you use are all wise investments.

Also consider natural resources such as natural gas, coal, and precious minerals. Those are solid investments with a good return on investment. Begin with those, and grow as time goes on.

One thing you want to avoid is shiny new toys in investments such as day trading. Day trading is simply gambling dressed up as a legitimate pursuit.

Playing the lottery would lose you much the same amount of money. Make sure your investments are legitimate.

budgeting

Common Personal Finance Mistakes

Properly managing your personal finances may be the most important skill in life, but it is a skill that far too many people lack.

While you may be able to get away with making a few mistakes, you will eventually find yourself in financial hardship.

Luckily, it is very easy to correct any financial mistakes you are currently making. These are the five most common personal finance mistakes that you need to avoid at all costs.

Living Above Your Means

It is simply impossible to make progress with your personal finances if you are living above your means.

Going on extravagant trips, buying the latest clothes and eating at a fancy restaurant every night may be a great way to live, but it should only be done if you have enough money.

save money

If you are struggling to survive until your next paycheck, then you need to make some serious changes. You will be amazed at how much money you have when you cut out all of the unnecessary expenditures.

Using Too Many Credit Cards

Credit cards are a great way to increase your credit score and gain exclusive rewards, but they must be used wisely. Unfortunately, most people simply are not using their credit cards responsibly.

The average American has nearly $16,000 in credit card debt. Your goal should be to pay off the balance of your credit card at the end of every month.

This is the only way to reap the benefits and rewards of the card without incurring any interest charges. If you allow yourself to get into debt, then you may never find a way out.

Failing to Set a Budget

The only way you can truly learn everything there is to know about your personal finances is by setting a budget. The budget will let you see exactly how much money you are spending on every aspect of your life.

The basic budget goals are to spend no more than half your income on mandatory expenses. You should also strive to save at least 20 percent of your income.

The rest can be used on things you want but do not absolutely need like entertainment, gym memberships and clothing.

No Emergency Savings

Life is completely unpredictable, so you never know when you will be faced with a huge unexpected expense. The only way to be prepared for an unexpected expense is by having an emergency savings fund.

Creating this savings fund will remove all of your stress if you are forced to pay for a car repair or replace an expensive household appliance. It will also help keep you from using a high-interest credit card or short-term loan.

Gaining a ridiculous amount of debt is the last thing you need to happen during an already tough time in your life.

Living Paycheck to Paycheck

Many families live paycheck to paycheck. If an emergency arises, the result can be a disaster. It is recommended by experts that you should keep at least three months worth of expenses in an account where you can access it easily.

Conclusion

Think carefully before taking on new debt. Make sure you can realistically afford any extra payments before you do. Do your best to save money for when you need it most.

money home improvement

How to Make a Budget for Home Improvement Projects

As a homeowner, it’s important that you set aside funds for ongoing maintenance and repairs for your home, both inside and out. Setting up an annual budget is useful, but you’ll also want to create an accurate budget for each project that you take on.

Below are four tips to help you make an accurate budget to take your next home improvement project from the starting point all the way through to completion.

vacation money saving

How to Save Money When Going On Vacation

Taking a vacation can be expensive. This is especially true when you’re traveling with your family. On average, the cost of a vacation for a family of 4 people is $4,580.

If you’re looking for budget travelling tips, there are so many ways to save. With a little advanced planning, you can cut costs for air travel, food and lodging. Here are 11 tips to save money on vacation.

saving money in college

How To Save Money as a College Student

College is a happy time for most students. Not only do people get to learn new things, but they also get to enjoy freedom. However, college comes with a lot of struggles.

Many people struggle to save money. The good news is that there are ways that you can make your money go further as a college student.

Cut Down on Impulse Spending

Cutting down on impulse spending is an easy way to save money. Do not give into the temptation to buy something when you are walking in the mall. It is best for you to wait until things go on sale before you buy them.

business co workers talking

Could Dallas Unseat New York City as The Global Financial Capital?

New York City has been the financial center of the United States since the nation’s founding. However, the 21st century economy has challenged the city’s long-time dominance. New urban centers are rising up and taking a larger percentage of the country’s financial transactions.

One particular upstart is Dallas. As the second largest city in Texas, Dallas is a center of intellectual and economic activity for the southern part of the country.

cars

Peer-to-Peer Car Sales App Expands into Texas

Technology has made many tasks far easier than they used to be. When you need a ride, you can use a rideshare app instead of looking for a taxi. Instead of printing out your boarding pass before you go to the airport, you can have it sent directly to your phone.

But one task that hasn’t changed much is buying or selling a car. Although many sites let you list your car online, that doesn’t alter the buying or selling process much.

Buisness people walking and talking

Economic Business Trends: Texas To Receive Top Ranking

According to Forbes, Texas has now been ranked as the second best state for conducting business in within the United States. In actuality, the state ranked No. 1 last year for its economic climate and was in second place on the Forbes’ list of Best States To Do Business in for 2017.

All of these rankings were due in part for the strong employment rates in the state and for the amount of gross product growth over the previous five years.

Business man with extended hand and work team in background

Business Plan In Texas To Help Increase Employment Rates

A new record has been set in the history of the twice yearly survey conducted through the Federal Reserve Bank of Dallas. Almost half of all of the business respondents had said they planned to expand their employment opportunities.

The survey conduction by the bank involved over 350 business executives in the state of Texas. The bank found that a majority of these businesses were planning to increase their employment positions over the following six to twelve months.

car loan keyboard button

How Texas Lenders Decide Your Auto Loan Rate

If you are on the market to buy a new or used vehicle and you need financing, you’re going to want to have a good idea of what a good auto loan rate is for you. Lenders determine auto loan rates based on a variety of factors unique to the individual buyer. You need to shop around to get the best rate, but you also need to know how to evaluate different offers.