As a young person it’s tough to get things going. Even if you are the most responsible person with your money and you have been earning and saving carefully, it can still be difficult to get recognized for your hard work. Here are some money management tips that can help you achieve your financial goals as a young adult:
Records: Keeping accurate financial records is a great thing to start when you are young. What are you earning? What are you spending? Where are your receipts? Where are your bank statements? These are all things it’s important to have on hand to figure out where your money is going and plan for the future.
Consolidate: Another smart idea is to make sure you have a consolidated financial picture. That is if you have 10 accounts with $1000 in them, that’s not nearly as impressive as one account with $10,000 in it. Don’t spread yourself thin between too many accounts, too many cards, and too many identities. When it comes to money management tips, less is more.
Save: Another classic mistake that young people make is not setting savings goals. Make sure you have a savings account that you contribute to regularly, and don’t touch it!
Debt: A little bit of debt is actually a good thing. If you have a revolving line of credit on a card, showing that you can handle the payments month after month is one of the most pivotal money management tips when you’re trying to establish good credit. If you pay off the amount in full, that may actually not be as good as carrying a small balance. Don’t max out your cards and pay them off in full; use credit judiciously and pay off at least your minimum due in a timely fashion month after month.
Patience: Another one of the money management tips that no one wants to hear is to just be patient. Building a credit profile is a lifelong exercise. It’s not simply going to appear when you turn 18 or 21 because you want it to. You have to show banks, mortgage companies, and other lenders that you are a good candidate for a loan because you have shown so over many years of consistent time.
If you are a young adult who needs to build a credit profile and can’t get a loan, Fast Access Finance may be able to help. Get in touch with our team to learn more about our loan offerings.