Are you financially savvy? Take this quiz to find out
1: Set dollar limits.
Set a $50 dollar limit and stick to it. If you’re thinking about spending more than $50 on something, step back and really consider if you need it. Perhaps that new video game will go on sale during the holidays? Maybe that restaurant is too expensive and you’d be just as happy with another place within your budget? Then reward yourself! If you ended up only spending $30, start saving that extra money for something you really want or need in the future or for an emergency.
2. Credit cards…help or headache?
Credit cards can be both helpful and a major headache. College students will start to receive many offers from different credit card companies. A credit card is NOT free money. Start with a $1,000-limit card that offers points or other rewards and pay your balance off monthly. This improves your credit score. Do not go over the limit as that damages your credit score with late fees adding up fast. When choosing a company, consider annual percentage rate, annual fee, grace period, and penalty fees. Absolutely stay away from department store credit cards. They do nothing for your credit score and can hurt it in the long run.
3. Start saving your money early and often.
While in your 20s, you have such a great opportunity to start setting yourself up financially for the rest of your life. Think about this: You save $3,000 a year when you’re between 20 and 30 years old, put that money into an IRA with a 7% average annualized rate of return and never save again, you’ll have $442,000 by the time you’re 65. Every penny really does count. START SAVING NOW. Skip that espresso, video game, new pair of shoes…SAVE. SAVE. SAVE.
Want more money tips? Contact Joel and his team here or call 931-919-2543.