Making money is great. Going from having nothing in college to actually having some disposable income can be a terrific feeling. There are some stresses that go along with your money, however. If you aren’t careful and are not managing your funds correctly, there will be many more problems down the road.
Understanding how to manage your finances can seem like a foreign language sometimes, but once you get the hang of it, it’s not too bad. Here are a few bits of advice to keep in mind as you start your new life as a money-holding member of the economy.
Pay your bills on time. It sounds simple enough, but over 25% of people are not paying their bills on time in the United States.
Good credit helps a lot. You’ll be able to get much better interest rates if you have good credit. Personal loans usually have rates around 20%, but if you have better credit, you can get rates as low as 5%.
Careful with credit cards. On average, consumers have almost four credit cards. Staying on track of your credit one card at a time is great, but make sure to be responsible with each of your cards.
Paying your credit card balance in full. Nearly 16% of credit card holders only pay the minimum balance on their cards. About 37% pay the full balance.
Housing interest. Every year, average households pay over $6,500 in interest.
Pre settlement lawsuit loans can help. If you happen to be in court, providing funds to the plaintiff before the case is resolved through a pre settlement lawsuit loan can help get you out of trouble.
Manage your debt carefully. About one in five young Americans admit to being in “debt hardship,” so it is important to take care of your debt and manage it responsibly so you don’t fall into some dangerous situations.
Buy structured settlements. Just under 40,000 Americans use the money they received from structures settlements every year.
Payment options. Choosing payout options that help you and your specific situation is very important. Cash for annuity now, pre settlement lawsuit loans, or extending your payments over the year with structured settlements all have their advantages. Choose what works best for you.
Being careless with your money might be fun in the moment, but the problems it’ll cause can haunt you for the rest of your life. Proper money management is extremely important. It might not be as fun now, but it will allow you to be much more secure in the future.