Five Financial Changes to Make in the New Year to Help You Get Ahead

It is said that youth is wasted on the young, and that phrase especially rings true for financial knowledge. For millennials (those born between roughly 1980 and 1994), the pressure of paying back educational loans, securing a mortgage for a home and daily expenses make the rabbit hole of adulthood seem insurmountable. Below are five ways you can make small changes to help guide you towards financial freedom.

1. No Matter How Tempting It Is…Do NOT Pay Extra Toward Student Debt

Student debt is a necessary evil for many; without loans, many wouldn’t be able to attend university or obtain a degree. However, paying back educational loans can be a daunting task and wanting the debt eliminated as quickly as possible is understandable. Instead of putting any extra money toward that loan, invest it instead. You can then use that money for emergencies, a vehicle or any other expenses you might have.

2. Work Hard to Pay Down Major Debt – But Don’t be Afraid of Small Loans or Credit Cards

Credit cards help you to establish yourself, and in some cases, can help to repair any derogatory marks on your credit score. Obtaining a secured credit card, or a credit card for those looking to repair a negative score, is an excellent way to establish yourself financially.

Sometimes, you might need a small loan to help with emergencies that you don’t have an available credit card for. Skycap Financial is a personal loan provider specializing in providing SkyCap loans. Established in 2013, the company offers small loans under $10,000 with a painless application process.

3. Monitor Your Credit Score, Daily Expenses

Most credit cards allow you to check your credit score for free, and it’s a service that you should utilize if you haven’t already. According to a report released by Forbes, there are multiple free apps that can help track expenses. If you can’t find a user-friendly app (or they simply aren’t for you,) an Excel spreadsheet works just fine. Tracking anything (finances, food, etc.) makes you more aware of what you’re doing, and usually leads to positive change.

4. Create a Debt Plan

Piggybacking off the above tip, tracking your expenses can help you to determine where your finances are going, and how you can effectively utilize your money. Skycap Financial offers programs aimed at teaching money basics to its clients, they also have an entire program – called SkyCap University – devoted to financial education. They even provide a budget worksheet that you can download and update as your finances change.

5. Forget Fad Diets – Try the Cash Diet

This one is exactly as it sounds; toss the credit and debit cards and spend only cash for one month. The holidays wreak havoc on everyone’s bank accounts, so the New Year is the perfect time to try this. Limit yourself to a certain amount each week, withdraw that amount from the bank and commit to only spending the cash in hand. Research has proven that swiping a card reduces thought process and is literally mindless work. Cash diets are a great way to control spending and increase money mindfulness.