Five Ways Millennials Can Escape Debt Misery and Live a Life of Financial Freedom
Everybody chases after financial freedom but today’s society is centered on debt. This is why so many struggle with crushing debt obligations. For many people, debt is a necessity of life, but taking on too much can downgrade your credit score and prevent you from buying a home or car. You can, however, minimize your debt burden by following some important savings tips.
The first step in securing financial freedom is having a trusty guide in the form of a money-saving app. The Squeeze app allows you to compare the best deals on the market while helping you regain control of your personal finances. These apps will also remind you of important due dates so you’ll never have to worry about a missed or late payment.
Reduce Student Loan Borrowing
The student loan trap is a prime area where many young people fall into a black hole of long-term debt. However, you can avoid this burden by refusing student loans altogether, or borrow minimally and only when necessary. First, look into scholarships, grants, or any other form of assistance before applying for student loans. If loans are a necessity, establish a budget and calculate expenses for each semester to find out how much you need to borrow.
Reduce Credit Usage
If you have a credit card, pay your balance promptly each month to avoid interest rate accumulations and increasing balances. If you are a student, find a card that is tailored to your college life. For example, there are a variety of cards that offer rewards points to students who receive good grades, including stellar interest rates and other perks. If you wish to avoid credit cards, apply for unsecured cards. Unsecured credit lines are based on the amount of money you deposit onto the card, and it is an excellent option if you have minimal or bad credit.
Start Your Own Income Stream
Starting a side business is one of the best ways to secure your financial future, and you could turn it into a lifelong career with determination and savvy. Pursue your lifelong passion, venture into a field where you have knowledge or expertise, and find a way to make money from your interests. Investing is another viable alternative. Although you may be skeptical of Wall Street and the world markets, there are safer bets you can make in the form of exchange-traded funds (ETFs) or government bonds.
Avoid Auto Loans
High-pressure salespeople may want you to finance that car you’ve always coveted, but there are times when you’re better off using cash and owning it outright. Buying your car is a great way to reduce your monthly recurring bills, and you’ll never have to worry about the Repo Man knocking at your door. When it comes to buying a car, ensure the car is in proper working condition and obtain a solid warranty to avoid costly repairs in the future. If you choose to go the financing route, find a plan that conforms to your budget. Strive for the lowest monthly payment plan possible, and you won't strand yourself financially.