Young adults across the country are gearing up for their next phase of life. Whether you’re heading off to college or diving straight into the workforce, this exciting new chapter brings a whole new set of responsibilities, including managing your finances. Navigator Credit Union has some advice to get you started.
Budget. Budget. Budget.
Think of budgeting as roadmap for your money. Track your income – your salary, part-time job earnings or even allowances from home. Then, list your expenses – rent, groceries, utilities and food. Aim to spend less than you earn, and allocate some money for savings and debt repayment.
Build a Safety Net.
Life throws curveballs. Aim to save 3-6 months of living expenses for unexpected car repairs, medical bills, or job loss. Even small, regular contributions add up over time.
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Use Credit Wisely, Build it Smartly.
A good credit score unlocks a world of financial opportunities. If you don’t have a credit card yet, consider getting a student credit card with a low limit and use it responsibly to build your credit history. Remember, credit cards are a tool – use them wisely, not for impulsive purchases.
Save for the Future
Many employers offer retirement savings plans like a 401(k). Even small contributions now can grow significantly over time thanks to compound interest.
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Financial literacy is a journey, not a destination. There will be bumps along the road, but by taking control of your finances early on, you’ll be well on your way to achieving your financial goals!