Personal Finance is all about getting the most bang for your buck. If you ever find yourself asking, what should I do with my money to set myself up for a successful future?, your in the right place. We not only lend money but have strived to provide financial education to all of upstate New York. By managing money the correct way, you will be on track to achieve the American Dream/Homeownership.
You work hard and you want your work to Matter. Follow these tips to maximize your free time and money.
Ball on a budget
The best place to start is to seriously look at your finances. Print out 3 months of Bank statements and write down where your money is going. I like to Divide it into three main Categories. Living Expenses, Wants, and needs. Examples of living expenses are rent and Insurance. Needs are the necessitates. Food, shelter, internet(if you work from home), Phone bill and gas. Wants are all of the other stuff. Dunkin Donuts, going out to eat, pizza, and the bar tab. After you understand where your money is going you will have a better understanding of your overall budget. A good rule of thumb is that rent should be no more than 40% of your budget. Zillow’s Rent Affordability Calculator can help you determine this number. In Clinton County New York, the average rent is $975. By living within your Means you can start saving money.
Start Building up a rainy day fund
The number one way to financial freedom is to stop living paycheck to paycheck. Using the 50/30/20 rule is a good place to start. It helps you save money for a rainy day. The rule is 50% to necessities, 20% to savings and 30% to discretionary spending. A more in depth look can be found here. A rainy day fund is great to have for life’s unexpected events. You could miss work, fall on hard times, or a number of different things could come up. One thing is for sure, you want to have the money when you need it.
Start Building up Your Credit Now
It is important to understand the benefits and downfalls of having a credit card. 67% of Millennial’s don’t have a credit card and almost a third of millennials have a qualifying credit score for a mortgage, according to nerdwallet.com. Remember to not get caught In the credit card trap by only making minimum payments. Always do your best to pay off as much as possible on your credit card each month. In the future, having a good credit score will help you with goals such as buying a house or getting a car loan. The main point to remember is….. Never let your debt grow to high and you should get a credit card to start building your credit now. Ideally the balance on a credit card should never exceed 30% of the high limit.
Take Control of Your Student Loans
If your one of the lucky few who didn’t have student loans you can skip this paragraph. If you do have them, the best thing to do is understand the loans. Do not shy away from them or think they will just go away. It is important to know how much you owe, your repayment status, and what options you have for both. A large portion of our pre-approved millennials have student loan debt and there are many payment options available. As the North Countries premier mortgage lender, we specialize in helping first time home buyers navigate every path to homeownership, whether it is different loan programs or managing your debt properly. Speak to one of our professionals and they can guide you homeownership and financial stability.
Closing on a New Home Purchase
The Difference between renting and owning is commitment and timelines. If you are only going to be in the upstate New York area for a few months, sign a lease. Make your landlord rich and rent. If you plan on being in an area for more than 3 years owning a home is usually a sound investment. Check out our rent vs own calculator if you are interested in how the numbers really pan out. Some popular loan programs for millennials in upstate New York are USDA no money down loans, VA, and FHA loans.
Let us know your millennial money tips by calling (518) 324-5544