Millennial’s Guide to Financial Success in 3 Steps

Thank you CreditRepair.com for sponsoring this post. CreditRepair.com’s team understands that a credit score is not just a number; it’s a lifestyle.

I have a secret to admit…

When I graduated college, I had no idea about anything related to finances. I had no idea what credit card to get, what credit even REALLY was or what it meant, what a 401K was and if I even needed it, and the list goes on! Luckily, I had my friends and my parents to guide me through the process but that got me thinking. We as students don’t even learn about these financial basics throughout all of our schooling. This is real world education and I think it’s SO important to at least have a basic understanding on financial literacy. I learned so much about how to take control of my financial success through experiences. Now, I’m ready to share 3 easy tips on how you can live your best financial life. Keep reading below!

 

BUILD YOUR CREDIT EARLY

What’s credit, you ask? Well it’s basically the ability to borrow money with the intent that you’ll pay it back. When you swipe that shiny credit card every Sunday night at Target (probably for things you don’t need), you’re telling the bank that you’re borrowing this money and you’ll pay it back on your monthly statement. Obviously, you can pay it back in increments or full – that’s up to you. I learned early on that it’s important to only spend as much as you earn. Scratch that, you should spend LESS than you earn if you really want to be successful. Save that extra money in your savings account for emergencies. 

Pro tip: You should always have about 6 months of salary in your savings account in case something unexpected happens.

I got my first credit card (the Discover IT card) right around when I went to college. The minute I was approved for that card, I started accumulating credit and building my credit score. A credit score is a tool that lenders use to help them anticipate how likely you are to repay your loan on time. It’s on a scale of 300-850. The higher your score the better.

The way I started building my score was through using the card and paying my bill on time every month. The more consistent you are, the more the lenders will trust you and raise your credit limit. One day, when you want to take out a loan for a house, the bank will review your credit score and make sure you’re trustworthy. If you pass, you’ll get a loan and if you don’t pass, it’s because your credit was not good enough and the banks are not willing to take a risk on you.

CREDIT REPAIR

This is where CreditRepair.com comes in to save the day. CreditRepair.com is one of the most recognized names in the credit world. It’s an interactive website where consumers can call a credit advisor and learn more about how to increase his or her credit score. Their purpose is quite literally in their website name – CREDIT REPAIR. As a beginner, this is a great resource to kickstart your credit score and learn more about how to be financially successful. 

In my personal experience, I had to rent an apartment right out of college in NY and I was so confused about the documents I had to sign. I had to give the leasing agency access to run a credit check and I was so nervous because I had no idea if I would pass. Luckily, I did because I had a great credit score and I was trusted to always pay my rent on time (which I do). If someone else was in my place and he or she failed, CreditRepair.com would be a great way to learn how to increase his or her’s credit score. CreditRepair.com will continue to watch your credit and address issues as they arise so that you can stay on track of your financial route and reach your goals. Think of them as your guide in the financial world. 

SAVE, SAVE, SAVE!

I have gotten so much better at this after a few months of working. When I started my job out of college, I was so eager to spend my paycheck on travel, shopping, and of course FOOD. When I would do my budget at the end of the month, I would barely be saving anything. I knew I had to get myself on track so I started to eat at home more, go out less, and buy less Starbucks (the biggest sacrifice)! The best way to save more is to set up an auto-pay on your checking amount. This way $XYZ amount of money is transferred to your savings account at the end of the month consistently.

Biggest tip: don’t touch that money! You can put some of it aside for emergencies and put some of it aside for big expenditures like a trip abroad. 

LEARN HOW TO INVEST

Ok, I have to admit, I’m still slowly learning how to do this. My brother is a pro at investing and he helps me out sometimes (if I really pester him). The stock market is a great way to grow your money. I downloaded an app called Robinhood where I deposit a certain amount of money and buy stocks after doing some research. I put it aside and don’t check it every morning because that just affects your mood (mostly negatively). Rather, I check it occasionally to see how my money is doing and 9 times out of 10, it’s always in the positive. Imagine how it would look in a few months and a few years.

Now is the best time to learn about the market. Whether you play it risky or safe is up to you. Obviously, I would say don’t put your life savings into the market but invest a little at a time.

Pro Tip: There are so many resources that teach you how to invest. Interestingly, Tik Tok has creators who create bite-sized videos about the basics of the stock market. Check it out!

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These are a few easy tips on how to drive towards a more successful financial future. I would love to put together more of these guides because it’s so important to learn financial literacy. Let me know if you found any of these tips helpful!