Planning your financial future is an essential step towards adulting, but many young people donтАЩt know how to get started. Ariel Carr is a digital selling expert, and her courses have helped numerous people get their finances under control, earn a side income, and even make six figures. Here are some of her top financial tips for Millennials and Gen Z.
Use the power of compound interest
Compound interest is simply defined as тАЬinterest on interest.тАЭ Basically, youтАЩll make a lot more money if you start investing as early as possible. тАЬI teach my students about compound interest first and foremost,тАЭ said Ariel Carr. тАЬInvest as early as possible, and youтАЩll end up with a ton of money when itтАЩs time for retirement.тАЭ
Make a budget
It can be hard to keep track of how much youтАЩre spending on a daily basis. For this reason, making a budget is essential. There are tons of tools online to do this, or a spreadsheet also works fine. тАЬWhatever gets you back in control of your spending and allows you to save.тАЭ The goal is to start tracking your spending habits to bring awareness to your personal finances.
Use credit cards responsibly
Credit card debt is one of the worst types to have, so you should avoid spending more money on your card than you can pay off every month. тАЬItтАЩs easy for credit card debt to get out of control, so enforcing restraint is essential here,тАЭ said Ariel Carr. One should strive to pay off their credit cards in full each month.
Create an emergency fund
Overspending often results in having not enough for an emergency fund. This money should be kept in a high-yield savings account and cover between three and 12 months of expenses. тАЬThis will also prevent you from spending on unnecessary things through your credit card,тАЭ said Ariel Carr.
Build up your credit score
Your credit score dictates whether youтАЩll be able to rent an apartment, buy a home, or get a new car. There are safe ways to do this, like getting a credit card and only spending a small amount every month. тАЬNever miss any payments like rent or loans to maintain your credit score,тАЭ stressed Ariel Carr.
If you need extra help with your finances, consider consulting Ariel Adams to improve your money situation exponentially.
