Love it or hate it, in many ways, money makes the world go ‘round. Being smart about money can make all the difference in your career and lifestyle. There are a few great tips and tricks that apply to almost anyone, regardless of how much they make or what career field they’re in.
Here are five money tips you’ll have wish you’d known sooner:
#1: You need to set financial goals.
Too often, our financial goals look something like this: make as much money as possible, as fast as possible. That’s not specific enough, and it’s not really realistic. It’s a far better idea to layout stepping stones to get where you want to go. For instance: secure a job in your field within six months of graduating college, make X amount per year after three years in the field, X amount after five years, etc. This will give you concrete goals to work toward on both a short- and long-term basis.
#2: It’s never too early to save for retirement.
When you’re young, it seems that the magical age of 65 and retirement are so far off that they’re not worth worrying about. This couldn’t be further from the truth. It’s never too early to start saving in general and particularly for retirement. If you invest even a small amount early on in life and let it grow, the compound interest will pay off in the long run. And that will be your saving grace once you actually reach retirement age.
#3: Budgeting is always a good idea.
Not many people love the idea of budgeting. But it’s a good habit to get into if you want your money to stretch as far as it can. Even the most basic of budgeting plans is a good idea. Try the 20/30/50 method, for example. 50% of your income is dedicated to living expenses; rent, groceries, utility bills, etc. 30% is allocated for entertainment expenses, like going out to a restaurant. The remaining 20% goes right into your savings account. It’s a great way to hold yourself accountable.
#4: A good credit score takes more than timely payments.
Think that a good credit score only takes making your payments on time? Think again. While timely payments are important, other factors play a big role as well. 30% of your credit score is made up of your amount owing, or how much of your total available credit you’re using. The length of your credit history and any new lines of credit also factor in.
#5: You should pay yourself first.
Put some percentage of your paycheck into your savings account first, before paying bills or spending it on anything else. Pay yourself first; if you won’t remember yourself, set up your bank account or direct deposit to automatically deposit a percentage of your paycheck into savings.
Are you on the hunt for a new job in order to make more money? We can help with that. Contact Axiom Staffing Group today.