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6 Signs You Are Better At Money Management Than You Think You Are

6 Signs You Are Better At Money Management Than You Think You Are

We know millennials have a strange relationship with money, not only because they lack them, but also because they grew up seeing the effects of economic hardships on a strong nation. The simple thought of money is enough to make millennials’ heads ache. They have a huge debt for their studies, they have no perspective of buying their own house, they have troubles landing a good job and many of them are forced to move back with their parents, when they can’t afford to pay the rent. This is why crowdfunding for your wedding is now millennials’ only option for affording a wedding.

As a millennial myself, I know how shattering it can be to wonder how are you going to live in retirement years or what will happen if you get fired.

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But experts in finances say you are probably better at money management than you think you are, if you are doing these things. I know I read this list breathlessly and I rejoiced at the end, when I realized I had checked multiple items off the list. I hope you will also score well!

1.You think about saving for retirement

As millennials are now in their 20s-30s, we have a lot of time until retirement. If you are thinking of your retirement years, despite this, you are on the good path towards proper adulthood/money management thing. According to money management expert Holly Perez, take advantage of your 401K and look for opportunities to maximize your savings, as well as finding reductions for your taxable income. You use recurring payments for the monthly bills

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In order to keep your credit score high, it’s very important to pay your bills on time. The most convenient way to do it is activating your recurring payments option. This way, you won’t need to remember paying the bills, as the bank will do it for you, automatically. If you are using this option, your financial status is not endangered by delays in payments and you are able to live off the rest of your money. The best time to set the automatic payments is right after payday, when your account has enough resources.

3. You also made automatic payments to your savings account

One of the best ways to ensure you do get to save money for your retirement fund is setting up automatic payments to your savings account. You can do this online, via online banking, at the end of each month, after you’ve paid for all the bills and groceries. If you are afraid you are not going to do this each month, ask your employer to direct part of your pay towards your savings account. For those of you who don’t like either of these options, simply set up another automatic payment, just like you did for your bills. If you already direct money to your savings, you know this is a great way to prevent overspending.

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4. You use financial apps and you value safe banking

If you are using financial apps to know the status of your account at any time, you are on the right track. People who are proficient in money management never leave their accounts to fate: they use financial and budgeting apps or strategies to make sure every dollar is spent wisely.

5. You are using your credit and debit cards wisely

All the previous things do suggest you are using your credit and debit cards wise, but this is so important, I had to reinforce it. Having a credit card and using it at providers who accept credit cards is a good thing, as it helps you build your credit history. This will enable you to get loans and benefits from low interest rates. However, you need to make sure you are not keeping debt on your cards!

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6. You have an emergency fund

The ultimate sign you are doing good is having an emergency fund. When you have to pay for something unexpected, you won’t have to take a loan, rely on crowdfunding or borrow money, which is going to make saving almost mission impossible. Having an emergency fund allows you to have peace of mind, as well as a base for future savings.

You don’t have to have millions of dollars in hidden, offshore accounts, in order to be financially stable. Money management is about knowing how to handle the payments and make the most out of your monthly revenue. If you recognized yourself in any of these signs, you’re more financially-savvy than you think you are, so congrats!

Featured photo credit: Good Vibrations Images/Elitedaily via cdn29.elitedaily.com

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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