There are a lot of important things you learn while studying in school. Unfortunately, personal finances are not always included in that education. Studies show that nearly 50% of high school seniors wish they’d learned personal finance in school. Furthermore, the 2020 TIAA Institute-GFLEC Personal Finance Index (P-Fin Index)—which is part of a long-term project that tests the financial literacy of U.S. adults every year—demonstrated a lack of personal finance knowledge, with those assessed only answering 52% of the questions correctly.
Because of the absence of personal finance education in most schools, many individuals are left to navigate their finances on their own or rely on advice from friends and family. Luckily, this article will cover some of the best financial tips and advice that everyone should be aware of.
1. Plan Ahead
One of the best pieces of financial advice you can follow is to plan ahead. That may sound simple, but many individuals think they are okay without a plan, then end up in debt or with other financial problems. Planning ahead involves spending less money than you make so you can have a savings fund for future expenses and extra money in case of an emergency.
Having a savings plan and budgeting each month will help you make sure you are staying on track and don’t fall into debt. Once you get in the habit of saving, you should also consider contributing to a retirement fund so you will also be taken care of later on in life.
2. Be Smart About Credit
Another important financial tip involves being smart about using credit. Lines of credit and credit cards can be very beneficial if you use them correctly, but they also come with a risk if you fall behind on your payments.
Credit cards especially seem attractive when they offer various rewards or cash-back programs on top of an initial period with 0% interest. However, if you don’t properly manage your spending, you can lose track of your expenses and end up paying high interest rates on your balance. These rates add up quickly and can damage your credit score, making other things difficult, like buying a car or house.
If you are looking to start a business—or already have one—one of the best credit options available to you is to get funding for the things you need through a company like Fundwise. Lending companies like them help you receive the best credit lines to get you started on the path to owning your dream business.
3. Credit Repair Services
If you do happen to damage your credit, don’t fret! There are some options out there that can help you turn things around, like credit repair services. Credit repair services work by communicating on your behalf with credit bureaus, banks, and credit card issuers in an effort to have your negative credit information either modified or deleted entirely. This can help to dramatically improve your credit and get your finances back on track. To learn more, reach out to CRG Credit Repair today.
4. Debt Services
Another important financial tip is to make use of debt services if you find yourself falling behind on expenses. If your bills are piling up and you don’t have the money to pay them off quickly, consider contacting a company like the Velomon Group to learn more about their Live Interest Free program. They are a financial company focused on getting you to debt freedom as quickly as possible by using existing resources to accelerate the repayment of debt accounts using payment optimization strategies.
They also offer individual grants to help you pay down your debt through their program. If you’re looking to get debt-free quickly, consider filling out a grant application today!
Investing your money is another fundamental piece of financial advice that can help you to multiply your funds. There are many different types of investments, including stocks, bonds, mutual (and other) funds, options, and more. Earlier in the article, we mentioned the importance of contributing to a retirement fund—like an IRA or 401(k)—which is itself a form of investing. One of the most popular options for retirement funds is a Gold IRA.
A Gold IRA involves gold or other precious metals being held for the benefit of the IRA account owner instead of the traditional paper assets. Investing in a Gold IRA offers a tax-efficient, stable way to diversify your assets while also protecting them. This option often presents favorable and steady rewards, further benefiting an IRA’s balance of risk and return. You can find out more about Gold IRAs here.
While it’s impossible to cover every piece of important information, the financial tips and advice in this article should help you get started on the path to a healthy financial future. At UA Legacy Grants, our mission is to empower over 1 million individuals with the tools needed to increase financial literacy and the ability to create financial abundance for their families. Our UA Abundance Packages help individuals and organizations to reach their financial goals, like making college more affordable for students, through our Purchase With Purpose program. Between grant donors and contributions from our “for profit” sister company, Universal Achievers, we are able to provide granted financial wellness packages to those in need.