Living the dream in the 21st century often comes with a side of financial stress, especially for the fashion-forward Gen Z and Millennials among us. Struggling with the paycheck-to-paycheck lifestyle is a reality for many, and with only a handful of states mandating personal finance education in high school, the struggle can feel real. And let’s be honest, the overwhelming amount of information out there doesn’t make it easier.
Like many of you, my school days were devoid of any financial literacy classes. As a creative spirit, my brain tends to get a bit foggy around numbers. Ironically though, my journey to financial understanding began while creating social media content for a finance podcast. Moving to a bustling metropolis further pushed me to understand the dynamics of money management. While I’m no Wall Street whizz, I’ve discovered that mastering your money doesn’t have to be rocket science. Here are three chic ways to start your journey towards financial prowess.
Invest in Your Financial Future
Much like meal prepping for a week of healthy eating or slathering on SPF for long-term skin health, strategic financial planning is all about playing the long game. Three ways to start investing in future you? Elevate your credit score by systematically reducing your balances, make the most of 401(k) or other retirement plans offered by your employer, and maintain an emergency fund (aim for enough to cover three to six months of living expenses – just for that peace of mind).
Fashion Your Budget
Working hard to earn your income is one thing, but making your money work for you is quite another. A good place to start is the 50/30/20 rule: allocate 50 percent of your income to necessities, 30 percent to your desires, and 20 percent towards savings or debt payments. Whether you prefer a sleek app or a good old-fashioned spreadsheet (my personal choice), budgeting is your secret weapon to financial stability and curbing those impulsive luxury purchases.
Get Credit Savvy
Your credit score can be your golden ticket to securing loans for significant investments like that sleek new car or your dream apartment. So, do your homework and choose a credit card that complements your lifestyle. From interest rates and fees to rewards programs and other perks, credit cards are as unique as the designer dresses in your closet. Remember, it’s always a good idea to pay the balance in full each month, if possible. Try setting a monthly reminder on your phone or a chic note on your fridge to avoid missing payments.
Navigating the world of finance can feel like walking in stilettos for the first time – a bit shaky at first, but once you find your balance, you’re strutting down the runway. Remember, mastering your money is all about making strategic moves now to ensure a financially fabulous future.
