"Seven Things 20-Somethings Should be Doing Right Now"
Coming from someone who is in her 20’s and constantly trying to figure out
what the right money moves are, I have decided that I’m going to reach out to
my fellow millennials for this week’s blog. So, here are seven things that
millennials (including myself) should be doing right now in order to make a
better life for themselves later.
1. Saving. I know that I talk a lot about saving. It’s not because I am a
natural-born saver (trust me), it’s because saving truly is the most important
thing that you can do with your money. Saving is the simplest, easiest way for
you to prepare for future-you and all of life’s obstacles that you know will come
along. Have an emergency fund with at least $1,000 in it at all times. That way,
if something does come up, you have it covered and don’t have to worry about
borrowing money. You can have multiple savings accounts, so setting different
accounts up to reach large goals can be really helpful to keeping yourself on the
saving track!
2. Budgeting. Honestly, the best way to make sure you’re saving money is to
create a budget that includes putting money into your savings account. Sure,
budgeting isn’t “fun” or something that most people get excited about, but it is
necessary for financial success. A budget allows you to make a plan for what
you’re going to buy and how you want to spend your money. Seriously, a
budget isn’t there to restrict you, it’s there to make sure you get to buy the
things that are important to you, even if that means giving up a few mocha
lattes and 2 a.m. honey-butter chicken biscuits. Make your budget however you
want. You can use spreadsheets, apps, or online tools to help get your spending
back on track and start saving for those ever-so-important goals.
3. Paying off debt. Whether it’s student loan debt or credit card debt, kicking
debt in the rear end to get rid of it will save you tons of money in the long run.
Sure, you probably don’t make the kind of income that will pay off all of your
student loan debts in a few months while still allowing you to eat and have a
place to shower, but make a plan of how and when you will pay debt off. It may
take a few months or it make take a few years, but it will be worth it in the end.
4.Saving for retirement. DO. THIS. NOW. If your employer has a 401K and
you’re not contributing, march yourself down to the HR office tomorrow morning
and sign up! The earlier you start saving for retirement, the more interest you
will be able to earn. The chart below shows two people, one who started saving
at 25 and the other who waited until 40. Both are earning 7% interest, but 15
years sure does make a big difference.
5. Checking their credit score. I’ll go out on a limb and say that 20somethings are getting better at doing this than they used to be. Now that
there are numerous websites and commercials for credit score checking
websites, it has become easier than ever before to keep in touch with your
credit. Checking your score helps you know where you stand, what debts you
have, and can help you catch fraud early.
6. Using credit cards wisely. Credit cards can be good or really, really bad,
depending on your spending habits and self-control. If you use a credit card
wisely, it will help you build your credit, which could save you thousands of
dollars on your next large purchase (like a house or a car). If you use credit
cards to buy a whole bunch of stuff that you can’t afford, it will probably hurt
your credit way more than it helps it.
7. Stop comparing yourself to everyone else. Everyone spends money
differently. Don’t look at what other people have and think that you don’t have
as much or that they’re “better off” than you are. You really don’t know
someone else’s financial situation. You only have control over yourself and what
you do with your money, so even if it doesn’t look like you’re “keeping up the
Joneses”, don’t fret.
Sure, we’re young. Mistakes will be made. But if Now-You starts looking out for
Future-You, you will be in a much better financial position later on. We may be
the generation that coined the term YOLO, but with a little prep work and some
good financial decisions, we can also be the generation that retires rich.
#YORO (You Only Retire Once)
Until next time…
March 22nd, 2017--"How to Prep Your Wallet for Summer"
Spring officially started on Monday (which may not mean a whole lot since our weather has been
abnormally warm this year), but that means that my favorite season is just around the corner. Brace
yourselves, summer is coming! Whether you have your bikini body and trip savings ready or not,
days of backyard barbecues and trips to the lake are upon us. While I’m mentally stoked for summer,
I still have doubts that my bank account is ready for all of the adventures the rest of me wants to
have.
I have about 10 weeks to get my wallet in shape and this is how I’m going to do it:

Not going out to eat: This is one of the simplest things that I can do to save money. I’m not
going to say that I absolutely WON’T do it, but I think I’m going to only give myself $20 a
weekend for non-essential items. This means that I’ll be cooking Saturday morning breakfast
instead of picking up my ever-so-coveted chicken biscuit and caramel macchiato. I guess I’ll
live.

Focus on free (or cheap) things for the next month. The weather is getting warm, which
means that it’s time for me to (basically) live outside again so this should be easy. Spending a
day at Palo Duro Canyon, grilling out with friends instead of going out to eat, or going to the
park can all be great ways to enjoy the nice weather without spending a lot of dough.

Set a recurring savings goal. This is quite possibly one of the easiest ways to save money
for anything. If I know that by the end of May I want to save a certain amount, I can figure
out how much I need to save each week, each month or each paycheck to reach my goal. For
example, if I wanted to save $300 by the end of May, I can save $30 each week. $30 sounds
a lot more doable to me and it will help me know how I need to make my budget. This is also
great for things that I want to save for that are far away. Let’s say I need $1,000 by
November to buy Christmas presents, I can just save $125 a month until then. If I want to go
on a big vacation next summer, $30 a week can allow me to save $2,000 by next July. This is
the simplest and easiest way to save because I can make saving a fixed expense and treat it
like it’s a bill.

Win my March Madness bracket competition. Just kidding, two-thirds of my Sweet 16 are
out already.

Not spending money on stupid stuff. My email has been filled lately with coupons and
deals that seem impossible to pass up. However, for the next few months I’m going to have to
pass on all of those deals that may sound amazing, but are really just a bunch of things that I
don’t need. All of these great offers and promotions are by design, so that you feel like you’ll
be missing out if you don’t partake in the savings. While I’m always up for a great deal, it’s
really not that great when it’s stuff that I don’t need and/or wouldn’t have been buying in the
first place.
So if you’re in the market for beefing up your savings account and figuring how you can make your
summer dreams come true, this is a start. While it may not be super “fun” for the next couple of
months, it will be well worth it when I’m sitting on a beach soaking up the sunshine.
As for that bikini body, I can’t help you with that.
Until next time…