Finance tips for this generation

By Terrence Stoker

Times, they are a changing. Personal finances, priorities and their frameworks change from each generation to the next.

While your grandfather may have some excellent methods of how he managed his finances during the earlier years, often the changing face of modern economics will render his advice less than perfect.

So what are some of the key lessons that we can pass on to this generation that will make their financial lives easier to manage? Managing the little lessons of finance now and following them throughout our adult lives can lead to larger and more important rewards in your later years.

 

Organising your finances

Make a concerted effort to track all your finances in some form. With the multitude of personal finance apps and the familiarity of people of the computer generation to make use of spreadsheets and simpler software to track finances is easier than ever before.

Gone are the days of shoe-boxes of receipts, most days simply by using the data form your internet banking accounts, its simple to mark your expenditure and income for each month. If you are using these digital systems, try to use cash as often as possible as it’s easier to keep records of, and most banks have flat card transactions rates.

Set up monthly savings payments into your account or ask your employer about long term retirement fund options. Your employer will often have policies such as the 401k (if you’re in the US) where before tax you will get an allocation of your salary paid into a long term savings account.

Many employers will contribute to this as well to improve your growth year in and year out.  If your employer does not offer a retirement plan package for their staff, ensure that you set up monthly debit orders at the beginning of the month to put away a savings amount that you can invest on your own.

 

Dealing with debt

Prioritise any long term credit payments so that they work for you. Many of us throughout our life will require some form of credit, be they mortgages, bonds, student or personal loans. Make sure that you manage the repayments in priorities, for example focus on paying those with the highest interest rates back first.

Check the stipulations of each contract and pay back the credit earlier that yields you benefits for early payment. Some long term credit has no benefit for early payment and can actually cause you to be penalised by the lender.

Personal finances have changed greatly over the last few decades, from apps, payment methods and lending systems based on the modern economy. Make sure you keep up with the times, watch your cash flow and ensure that you start saving early for the benefits during the rainy days. 

Terrence Stoker is a Blogger with a keen interest in the development of finances over the ages. Whether its savings, loans or day to day expenses, Terrence is fascinated in ways that he can control finances better, simpler and make the execution of his budgeting faster each and every month.