When it comes to your personal finances, you want to do everything that you can to ensure that you are making smart financial decisions. This means saving money, making smart credit card usage decisions, and being informed about financial decisions that can impact you later on in life (such as disability insurance or life insurance). Given the stressful scenarios that financial issues can lead do, it is imperative that you consider the benefits of using insurance brokers to protect all of your financial assets. Keep reading below for additional information on how to make smart financial decisions!
3 Tips for Making Smart Financial Decisions
1. Do what you can to understand basic financial literacy, as you want to stay ahead of the game.
Financial planning is a stressful process, but it is necessary to protect all of your financial assets. Financial planning included basic financial literacy, such as understanding your credit, making timely payments and being informed about money spent and owed each month. That said, keep in mind that on average, only 24% of millennials demonstrate basic financial literacy (as determined by a study from the National Endowment for Financial Education). This is significant, as a number of people are very lost when it comes to making financial decisions. To avoid struggling like a number of millennials, consider reaching out to insurance brokers who can help you better organize your financial situation to stay ahead of the game.
2. When it comes to credit card usage, make sure that you are willing to do more than just pay the minimum amount due on your card.
Do you have a credit card? Do you get notified to make payments on it each month? If so, be sure that you are making more than just the minimum payment (if at all possible). Out of all Americans, approximately one-third of Americans pay only the minimum amount due on their credit card each month. This is substantial, as paying only the minimum amount can prolong the amount owed on your account. If you work closely with insurance brokers or a financial advisor, you can create a plan to start paying more than the minimum each month.
3. Know that you are not alone in having debt, but also do what you can do eliminate any money owed to lenders.
Debt can be a scary thing. No one wants to owe anyone a bunch of money, but working to alleviate debt you owe is a great way to lessen financial stress. Nearly 77 million Americans have debt in collections, that in turn are reported in their credit files. This means that you are not alone in owning money, so don’t stress! The most important thing you can do it start planning and find a way to eliminate debt. Even low payments are a great starting point, and then you can slowly work your way up to making bigger and bigger payments.
- If you found these tips helpful, then you are on the right track to financial freedom. Finding a way to protect your finances is crucial, as your finances follow you around for life. The best thing to do is to start by reviewing your finances and being aware of your needs. Then consider using insurance brokers or financial planners in order to create a plan. Also, follow the key steps above to help lead you towards success. First, stay ahead of the game and learn some basic financial literacy. Second, if you can, start paying more than just the minimum amount owed on your credit cards. Lastly, know that you are not alone in having debt, so don’t let that stop you from organizing your financial life!