Apr 23, 2015
Bad habits tend be to easy to catch, especially when in the 20s. Some of the worst habits listed among millennials, as per a recent study includes aspects such as racking up credit card debt, overspending and undersaving. With some simple actions, these bad habits can be effectively transformed into good initiatives.
- Track your spending
Keeping track of spending helps to avoid overdrawing from an account. Many people often get tripped by the fact that weekend purchases from debit cards are not recorded until Monday. This falsely cause them to believe that they have a higher balance than what they really have, resulting in overdrawn accounts. As per data collected from the Consumer Financial Protection Bureau, 1 out of 10 millennials have an overdraft as least 10 times a year. This constitutes of about $350 in overdraft fees.
- Plan ahead for big expenses
In case of a planned big expense, such as a vacation or wedding, using a credit card could prove to be risky. This is because interests on these accounts tend to grow up quickly. Moreover, penalty fees for late or missed payments can adversely affect your credit score which could in turn make securing a loan difficult.
- Set up an emergency fund
Having at least six months of living expenses saved up for emergencies is often recommended. This would ensure that you would be able to cater for any unexpected expense and be able to fend for yourself in the event that lose your job.