Millennial money

6 empowering money moves

Are you among the 60% of Americans living paycheck to paycheck, or one of the 81.6 million paying off student loan debt?

You can gain some control over your finances by following six empowering money moves to help build momentum with small gains.

1

Track your spending for one month Tracking your spending for one month will help you identify habits and spot excess expenses, says Colin Walsh, CEO of Varo, an online bank.

“By keeping track of each and every purchase you make … you can more easily start to see how small purchases here and there add up,” Walsh says.

2

Switch to a high-yield savings account If you’re already doing the hard work of saving, why not make money on your money?

If you have $1,000 in a savings account with an annual percentage yield of 0.09%, you’ll earn a measly $4.51 over five years. In a 2% APY account, that same $1,000 would earn about $105.

3

Increase your credit score Several credit card issuers and personal finance websites offer free credit scores, so you can monitor it regularly and keep tabs on your progress. Then look for ways to increase your score:

• Check for errors and dispute any you find with the credit bureau.

• Lower your credit utilization (the percentage of your credit card limit that you use) by paying down cards or increasing your credit limits.

• Become an authorized user on a partner’s or parent’s credit card.

4

Pay off one loan or credit card Instead of trying to pay off all your debts at once, direct your money at one debt, while making the minimum payments on the rest.

You can tackle your debts in order from the smallest to largest to net some quick wins, or get rid of your most expensive debt first by focusing on the account with the highest interest rate.

5

Plan for expected expenses “If you have an old roof, you’re going to eventually need to replace it, so start setting money aside for that,” says David Carlson, founder of Young Adult Money, a personal finance blog.

If you’ve set a little aside each month, you’ll feel more confident knowing you can cover the cost without rearranging your budget or going into debt.

6

Negotiate your salary Start practicing your negotiation skills so you have them when an offer comes in. Arm yourself with salary data for your role and experience level and list the various qualifications you bring to the table.