Did you know that a whopping two in three families don’t have an emergency savings fund? Is it any wonder, then, that over half (53%) of adults feel financial anxiety?
These statistics are even more relevant in 2021. With the worldwide pandemic and global financial instability, we have a lot to lose. Are you feeling particularly anxious due to your finances this year?
If so, then the following financial tips are for you. Read on to learn some awesome finance facts that you’ll wish you’d known sooner!
1. Never Live On Borrowed Money
Have you ever made a financial faux pas? If so, then you already know how difficult it is to bounce back from an error. This is especially true if the mistake causes you to fall behind on other bills.
What’s the biggest financial mistake you could make according to Americans? It’s taking out too many student loans! This error takes an average of 18.5 years to rebound from.
Never live on borrowed money because it will catch up to you sooner rather than later.
2. Credit Cards Are Dangerous
Having a line of credit can be a saving grace. On the flip side, it could also lead to financial ruin. So, what makes credit cards so dangerous?
Everything you buy on credit costs you more in the long-run. If you’re not paying off your credit cards every month, you’re paying a good chunk towards interest. If you borrow too much, you might never be able to catch up.
3. Even the Wealthy Need to Budget
Do you think the wealthy pay no attention to maintaining their budgets? If so, then you’d be wrong! Even the wealthy need to budget their money or they end up behind on bills.
A budget doesn’t have to be restrictive. It’s just a way for you to know and control where your money is going. That’s something that everyone—wealthy or not—needs to know.
Don’t make the mistake of thinking you can find financial success without a budget.
4. Now is the Right Time to Save for Retirement
When’s the last time you thought about retirement planning? It’s all too easy to neglect the future until it’s upon us. It’s never too early to start planning for your retirement, though.
Saving enough money to comfortably retire on takes time. And odds are, you need a lot more money than you think.
Saving even a minor amount now will pay off big time in the long run.
5. Good Credit is Like Gold
Were you taught about your credit score in school? You likely weren’t, but this score plays a major role in your finances.
If you can achieve a strong score, then you’ll have greater financial freedom. You’ll be able to take out bigger loans and get lower interest rates.
Financial Tips For a Brighter Future
These financial tips will help you boost your economic status with some effort and time. If you’ve got the will, then this is the perfect time to get moving. The whole globe is in a recovery period, so it’s the perfect time for you to rebound, too.
Are you looking for more in-depth financial advice? If so, then you’re in the right place. Check out a list of my books to get started on your brighter financial future.