Finances….they are tough and no one has one true way of figuring them out. Coming out of school, it’s like trial and error until you figure out what “works best for you.” Well, that’s what everyone says at least.
If you’ve listened to The Millennial Way Interview w/ Jordan Murphy, Jordan gave us some great insight on prioritizing money and some fun apps to help you with that. Below are my top tips on saving money & getting started off on the right foot. I’ve also included some links to the best savings accounts, apps I use to invest, as well as some apps I use to manage my money & stay on top of bills.
Get out of debt
Before you can ever get in the GREEN, you need to get out of the RED - the negative. Pay off those loans. Be aggressive in paying off the loans with higher interest, too. The high interest loans will continue to grow and cost you more money at the end of the day.
Choose 1 Financial Goal to Work Towards in the Short-Term (3-6 months)
This isn’t enough time to save up for a car or a house, but this will help you practice the art of saving.
Set a goal that is attainable - like a fun vacation! Figure out how much it’ll cost you to go + spending money on that trip, then set a monthly cadence of putting money into a savings account (call it $200/month)
Open a Savings Account w/ Another Bank
Out of sight - out of mind! Open up a savings account with a different bank, that way you don’t check on it often. The more you check out your bank account, the more enticing it is for you to spend that money.
My financial advisor says, “Set it & forget it” - which is exactly what you need to do. Put your money aside, save for the future/your goal and let that money grow
Below are some links to online banks that have high return rates for savings accounts
Set Long Term Goals
Think about your life in 5 years and 10 years
What do you want to accomplish in that time with your money? Is it that you want to buy a new car and save for a house? Do you want to travel the world? Move to a different country? Well all of these cost money - a lot of money and you’ll need to save for these.
Set these goals and put a dollar amount to it. Then, start setting & forgetting. Put that money away and DON’T LOOK AT IT. Just allow it to grow
If your company allows for direct deposit (which almost every company does), then put a certain amount on your direct deposit directly to your savings. That way you never see the money you are saving and then your account will just grow, grow, grow!
Invest in a 401k
Most companies will match a certain percentage of your 401k - meaning that if you put 4% of your check into a 401k, then your company will put in another 4%.
Max. This. Out. Put up to as much as your company will match and start saving for retirement. It might seem small at first, but that bad boy will grow and will continue to grow so you can retire!
Social security won’t be around by the time we retire, so it’s imperative you start putting money into your 401k!
Banks with solid saving returns:
Apps I use for investing:
I use this for my stock portfolio. It’s commission free trading, so you don’t have to worry about any weird fees. Plus, the app makes it simple and easy to understand investing.
I use the round-up feature on here. For every charge I have on my card, they round up to the nearest dollar and invest it. While it’s pennies or nickles, it adds up after a while!
Apps I use to Manage Money & Bills:
Great at keeping me updated on my bills, any changes to a bill or weird charges. They have great push notifications that happen in real time, too.
Love this app. Mint helps me track my budget and stay on top of my own financial goals. From saving to my bills, Mint is fantastic.
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