The 20s are an important time period in one’s lives it’s a time when you’ve begun earning or are pretty much into your first or second job, you have the spending power. However, handling money is not something all of us are equipped with and we need advice and tips lest we are left wanting later in our lives.
Here are some well-worn money tips for your 20s:
Negotiate your salary right: If you don’t do this right, your earning potential for the rest of your career will be affected. Make the right connections and seek them out to vouch for you during evaluation. Be proactive and ask for a review six months into the job. This way you will know if you want to stick to the job or not or what else can be done to solve the bump along the way.
Take advantage of your credit cards: Research and zero-in on a card that will give you rewards you actually benefit from. But that would mean that you would need to pay back in full every month. Balances that are untended to, can mean accumulating interest. So if planned well, you could be covered through the month without hassles and earning rewards like discount and gift card along the way!
Avoid being fleeced on ATM fees: Avoid withdrawing money from ATMs other than your bank’s ATM. Little costs tend to add up. Withdraw $20 every time you are paid. This will cover for some small and big expenses like meals, tips, paying the valet, etc. Even better, download an app that helps you track the right ATM easily.
Start saving early: consider saving $100 a month in your twenties, so that you have more than a million by the time you are in your 60’s. but you start saving only during your 30’s you might end up with 50% less than that. Also, start early on a 401k, a Roth or an IRA and, with a good broker, it is never too late to put some money in the stocks.
Save more: As long as you don’t have a house to pay for or kids to raise, it isn’t much to save 20% of your earnings. This will put you ahead when you want to buy that dream house or have kids who want to go to college. Also, avoid putting money in a stable fund and invest in an equity instead. An equity might seem like a risk, but a stable fund will not see you through inflation.
Lastly, take charge, be accountable for everything you spend. Once you start noting everything you spend dollars on, you will easily be able to recognize the expenses that are simply a drain on your finances and the ones that are absolutely necessary.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.