It's Never Too Early

Hey, millennials, when it comes to improving your finances, time is on your side. You haven’t yet reached your peak earning years, and you’re still many years away from retirement. Establishing good money habits will help you throughout your lifetime. These ideas may help.

Keep a Spending Journal

If you’re having a difficult time finding money to set aside, maybe you’re not looking hard enough. To see where your money is going, take the two-week challenge. Write down everything you buy over the next 14 days — even that pack of gum. Once you add it all up, you might be surprised at how much money you’re spending on small or impulsive purchases.

Know How Much You Owe

It’s easy to lose track of how much you’ve charged to your credit card. If you’re charging more than you can pay off each month, your purchases are accruing interest on top of interest. Add up everything you owe. Then create a plan to pay off the balances. The money you’re paying in interest could make a good start on saving for your future.

Create a Spending Plan

Instead of spending money haphazardly, come up with a budget that lists all your expenses — mortgage or rent, utilities, insurance, car payment, etc. Subtract those expenses from your take-home pay to see what’s left for food, entertainment, clothing, and other items. Make sure you include a category for savings. By making savings a budget category, you’re more likely to put money away.

Make Saving Automatic

You can arrange to have money from each paycheck deposited automatically into a savings or other account. Because you won’t see that money in your checking account, you won’t be tempted to spend it.

Pay with Cash

Use cash or your debit card for all your purchases. That way, you can spend only as much as you have in your bank account. Consider placing cash in labeled envelopes for specific expenses like gas and lunch.