*This is a contributed post*
Adulthood often involves a lot of jargon about money and a lot of sore heads from young adults who were never taught about investments or mortgages in school. For some reason when you become an adult you are expected to know all of this stuff which can be stressful and frustrating to boot. So for those of you starting out on your financial journey, here are some things you should know.
Learn about your credit score
Credit score…. what is it? Well, your credit score is a number which indicates how likely or unlikely you are to pay back a loan if you are given on by a lender. You can build your credit score with small loans such as a phone contract and this can allow you to be trusted with a loan in the future. You will or course have questions such as how long do late payments stay or record or does medical debt affect credit score? And with a little research and reading you should have no issues finding what you need to know.
Avoid taking out loans
Loans are never a good idea unless they are for something big like a house or a car. A loan is an amount of money which is given to you by a lender under the guise that you will pay it back as soon as you can including interest to make up for the time they didn’t have the money. Taking out a loan is dangerous in your adult years because you can be tempted to spend more than you can afford and this can leave you unable to pay the loan back. Debt is something you never want to have.
Save money on food
Food is always a big bill in your shopping cart and it can make up most of your spending full stop. As someone who might not think of ingredients and themed menus for the week, you will likely end up overspending and also having things leftover at the end of the week. But don’t fret, there is a way to save money on your food and not waste any of it. Think of making a theme for your week such as Italian food. It could be lasagna one night, carbonara the next and pizza the next… but all of the recipes share common ingredients such as cheese, pasta and tomatoes. By creating a whole week with similar foods you can cut down on ingredients cost and save time on cooking too. A big batch of tomato sauce for example can be used in several ways.
Create a direct debit
At the end of the month when you get paid, you likely have a direct debit set up for bills to get them paid right away. But did you ever think of doing this for your savings? We don’t save enough money, and if you want to upscale your home or enjoy a holiday next year, you will want to make sure you can save enough. Create a direct debit for an amount you can afford and let it leave your bank each month without fail. You won’t be tempted to spend and you’ll be accumulating a healthy savings.
Nailing these money hacks can help you to save for the things you really want. So next time you want to treat yourself, you’ll be able to use some tricks to help you afford designer pieces and enjoy a touch of luxury, guilt-free.