Financial Advice – Setting Yourself Up for Success

Over the years, we’ve received many different pieces of financial advice, both good and bad. Today, we’ve decided to share with you some of the best pieces of financial advice that we’ve received. These tips will help you set yourself up for long-term financial success.

1. Never buy a brand new car.

Along with this tip is never use debt to buy a brand new car. Vehicles are a depreciating asset, meaning that as soon as you purchase that car and use it, the car’s value decreases. It doesn’t make sense to use debt to purchase a vehicle that is going to depreciate in value over time. It is better to invest your money earlier, then use that money to purchase the vehicle, later on. By doing so, you will have saved yourself money in the long term, in interest and fees.

2. Don’t use credit cards to buy things you don’t need.

My first credit card, my parents advised me to use it for things like groceries, gas, and things that I knew I could pay back right away. This helps build your credit. What does not help build credit is spending more than you make each month, by using credit. 54% of Americans spend more than they make each month, through the use of debt. If you can’t afford it, don’t buy it!

3. Automate everything. 

By automating your bills, you eliminate the possibility of forgetting to pay something, over-payment, or underpayment. Your bills are always paid on time, and the budget becomes less stressful as time goes on. It just becomes more natural and seamless. The more you can automate, the easier your budget becomes to manage.

4. Make an extra principle payment on your mortgage every year.

Just one extra principle payment on your mortgage every year can shorten the length of your loan by years. If you can do more than that, even better. This basically equates to at least one additional payment on your mortgage every year, to cut down on the total time you are paying down your mortgage.

5. You don’t have to be rich to invest.

Anyone can invest money. In fact, everyone should be saving and invetstig their money for the future. Only 1 in 3 millennials have more than $1000 saved for the future. That is a scary thought! What if there is an emergency, illness, etc. You should have at least 3-6 months of expenses saved up in case of emergency. The first step in that is having a basic emergency of $1000 saved. This will help dig you out fo the hole if you’re in one,

Start implementing these steps today, and you’ll be in a better financial position than you were yesterday. It just takes on step at a time, and hard work to be in control of your finances.