Personal Finance:5 Money Tips That Get You Out Of Student Loan Debt

I find it's often written by people coming from an entirely different generation. They graduated with student loans that were much lower than those people in my generation are struggling with and bought cars and houses. The path to success for them required that they pinch pennies and find ways to move slowly up the ladder at work.
I'm not trying to say that everyone in the generations that came before millennials had it easy when it came to money. However, when you look at the challenges that we face as a generation, it's clear that they are unprecedented.
But it's not just our financial realities that have changed, it's the way we work and interact with money and the way the world has changed that makes typical personal finance advice I encounter less relevant for millennials. I mean, many financial gurus are still recommending that people track their expenses in budget journals that they carry around with them wherever they go. As a millennial, I want to sit them down and ask them if they've ever heard of an app.

Here is some advice that I've found to be actually helpful to millennials:

1. Being Thrifty Isn't Always the Right Choice

So much of personal finance advice revolves around how you can save a dollar here or a dollar there. It's great to save money and you should definitely try to do so, but it's also important to consider the return on investment of your time. If an hour's worth of work will save you $100, then great! Be thrifty. However, if an hour's work will only save you $10, but you could make more than $10 in that hour by working a side hustle or second job, then you might be better off doing some freelance work or starting that side hustle. As online and freelance opportunities abound, there are many ways that you can use your time more efficiently to be further ahead than you would by clipping coupons.

2. Find an App to Make It Simple

Another problem with a lot of personal finance advice is that it's often based on low-tech solutions. If I had a dollar for every time I've read that I need to track my spending in a budget journal or take everything out in cash and put it in different bags or jars based on your budget, I wouldn't need a budget because I'd have so much money! These solutions, however, are incredibly time-consuming. People who attempt them often become frustrated and end up giving up. These days, why bother adding up your budget when you can easily use an app that will track it for you automatically? Haven't these experts heard of Mint, or Level Money or Home Budget?

3. Don't Get Into Student Loan Debt

Millennials are facing one huge financial problem as a generation and that is ballooning student loan debt. The old advice to young people telling them that they will easily be able to pay back their student loans when they graduate isn't relevant when we're talking about paying off tens of thousands of dollars in student loans. Instead, millennials should focus on getting scholarships, living cheaply, and maximizing their earning potential while they're in college to keep their student loans to a minimum. That might mean going to a cheap college, or calculating the return on investment of their degrees to get the best deal.

4. Get Out of Student Loan Debt

If millennials do find themselves deep in student loan debt, they need to get out of it ASAP. While student loan debt is often said to be 'good' debt because of the relatively low interest rates, there's nothing good about it. Every dollar you spend on student loan interest isn't going toward a down payment on a home or your retirement savings. Young people then lose the opportunity to take advantage of how compound interest can turn money invested in their 20s or 30s into hundreds of thousands of dollars by the time they retire. Hunker down and pay off your student loans as soon as possible so that you can start saving for your future. Another bonus to paying down your student loans – you'll be building your credit. And better credit can get you access to cheaper interest rates on, say, a mortgage when you're ready to buy a home. You can see how your student loans and other debts are affecting your credit by getting a free credit report summary on Credit.com.

5. Don't Climb the Ladder

Prevailing advice suggests you should get out of college and take the best-paying entry-level job you can find. But that isn't always the best advice. Many millennials are finding themselves unemployed and underemployed once they graduate. Millennials (and younger) might find it a better strategy to start as early as high school getting work and volunteer experience that could potentially serve them in their chosen profession. If they think they'd like to be an accountant, they may want to get involved in non-profits or campus clubs where they can get experience as a treasurer. If they want to be a journalist, they might start a blog and start freelancing as soon as possible. Once they graduate, they shouldn't necessarily go for the job that will pay them the best. Instead, they may discover that they're better off taking a job that will give them the most responsibility, even if it pays less in the beginning. Once they spend a year or two gaining valuable experience, they can then look for other internal or external job opportunities. Often, they can parlay that experience into a much better paying job, saving them years of working up a seemingly endless corporate ladder.

Personal Finance:5 Ways To Put Your Finances In Good Shape.

The beginning of another year is,a great time to reshape and fine-tune your plans and start making serious progress on your money situation.
Like the New Year resolutions that have become
an annual ritual,setting your financial goals early in the year is desirable if you do not want to end the year in financial misery.
People in some countries have marked 2015 as the austerity year.Especially,people in countries where oil is the mainstay of their economy.The reasons are not far-fetched.
Global oil price has crashed to about $60 per barrel,from over $120 per barrel it was before.
Simple economics tells everyone that there is fire on the mountain,that things are really going to be tough.
Beware,that in 2015, salaries will accumulate,rents will not be paid,parents will be defaulting in school fees,and the overall family budget will shrink.
With this scenario,nobody will be told to tighten his or her belt.Nobody will wait to cut coat according to size.

But,as it is,taking wise personal finance resolutions can help us come out of the woods.
Below are few things we could do to really shape up in both personal and family finances:
1.
Keep track of your expenses:
If you have been a spendthrift,this time around,try and identify those areas where you have gone overhead.These could include things like spending too much on celebrations,parties,eating out,buying fancy and luxury items,recklessness in acquiring gadgets,recharge cards,
frequent trips or even paying premiums on unwanted insurance products or wasting money on overdue penalties.
With all the above in mind and in action,it will be easier to keep good track of expenditures and savings.
2.Keep track of your debts:
While you are keeping good track of your payments(expenses) to cut down on unwanted expenditures,it is also essential to keep track of your debts.
If you have too many loans n you,like car loan,office IOU,co-operative society loan,payday loan or even personal loan,it's high time to get rid of them first and fast.However,if you are having a housing loan or mortgage still running,try to identify ways of making frequent repayments in the coming years.But always,keep in mind it is first important to do away with unsecured loans as these loans carry high interest rates which could impact your investments.
3.Educate your self:
This year,make it a point to re-educate yourself on various investment products such as stocks,landed property,fixed deposits,money market products,tax products,basics of investing and review your portfolio.Experts say you need not master it all,but basic working knowledge is definitely required.
4.Invest in small quantities:

If you are finding it difficult to save and invest,the best way is to start investing in small quantities.By doing so,you will easily be able to create a corpus for the coming years.For instance,if you are keen on saving some dollars or your local currency every month,begin now.No amount is too small to start.Saving $300 to $500 month after month will give you $3,600.00 to $6,000.00 in one year.Instead of waiting to gather a lump sum amount so you can then invest,it is always better to start with smaller amounts,by way of systematic investment plan or recurring deposits,so that you do not waste time. Most times,when you tell people to try to invest,the answer is always;"my salary is too small to save from it".No matter how small your salary is,begin this time  to save.You can reduce that $500 you spend monthly on communication recharge cards and channel the same to to savings.

5.Choose products Carefully:

Experts say that most of the people buy financial producyts  blindly .

Buying traditional insurance products
 is the best example of this.Premiums are paid every year on such prolicies without realizing
 how low the total sum assured is
.Sadly,most investors decide to invest only at the last minute,at the end of financial year,in order to save taxes.These steps could impact your overall financial health.Hence,it's important to plan your tax investments at the beginning of the year.Choose
 the right products,buy insurance and get rid of debts,so that you can then focus on fulfilling your financial goals.
If you have missed out on buying life or health insurance,do it now.It will help you and your family incase of any contingency.

By taking baby steps on your finances,you can be rest assured that your financial goals are in place,and you are well placed for the future.It's never too late-start today.

Payday Loans:Frequently Asked Questions-FAQs

1. What is Payday loan ?: Payday loan is a credit advance given to a borrower,which he/she is expected to repay during his or her next pay check
 2.Who gives Payday loans?: It is always given as a lending service by various private financial organizations who specialize in granting loans and other kinds of small credit facilities to people on short term
3.Are such organizations approved or recognized by the government?: Yes !.Payday loan is,one among the various services or products offered by the financial market.And there is a financial regulatory body or bodies in every country including yours.In the USA,Payday loans and other related short-term credits are being regulated by the Consumer Financial Protection Bureau(CFPB),and it's in accordance to the Dodd-Frank Wall Street Reform and the Consumer Protection Act.But,14 states don't permit or allow Payday loans in their domains.While in the United Kingdom,Payday loans and other short-term financing are regulated by The Office of Fair Trading(OFT).In Australia,short-term loans,payroll loans and related services are controlled by the Uniform Consumer Credit Code(UCCC).Canada has no central regulatory body for this business.Nothwithstanding,Payday loan businesses also thrive there.The government of Canada permits the different provinces to control and regulate Payday loans and credits in their own districts or provinces.For instance,the British Columbia and Saskatchewan of Canada regulate their short-term credits and loans through the Business Practices and Consumer Protection Authority(BPCPA).
 4.What is APR ?: APR simply means,Annual Percentage Rate.That's the interest rate charged on the borrowed money.
5.How is the APR ?: In the US,it's between 10% to 36%.
6.Aside government regulatory bodies,is there any other way a prospective borrower can prove or examine the authenticity of a lending service provider? .Yes!.Almost all businesses form their trade organizations or associations.So,you can verify a service provider by finding out whether he belongs to a government-registered trade association in that regard.For example, Payday loan providers in US has an umbrella known as Community Financial Services Association(CFSA).In the UK we,have the Community Financial Association(CFA),and Canada has the Canadian Payday Loan Association(CPL A).Other countries where such businesses exist,there must be a trade association.So,check if your prospective lender belongs. 7.Where and when did Payday loans?: No one can say when actually Payday loan began.This business is as old as money exchange itself.Though it became known in the USA when the Senate in 1959 passed the bill according to which people were permitted to receive small sums of money as short-term loans.Then,it was called Check-Cashing-Loans.To be precise,it became a thriving and popular business when, in July 1996,the senate legalized them.With the advent of the Internet,people now can apply and borrow online.
8.What other names is  it called ?:  It is also called:Payroll Loan,Cash Advance Loan,Small Dollar Loan,and even Salary Loan,etc.
9.FundDesk did not mention my country: Actually it began in the USA,but it has moved to the UK,Canada,Australia and other parts of the world,including Asia and African countries.In Nigeria,it is called "Salary Advance".Commercial banks under,retail banking services offer salary advance to employees of reputable organizations.It might be called a different name in your own country.
10.I am self-employed,can I access Payday loan ?: Not for sure!.Most Payday lending providers do give only to employees of registered organizations and those in the public service,pending when they will receive their next pay check(cheque).
11.What is the loan duration?: Cash Advance Loans last 14-35 days.
12.What if a borrower failed to repay within the stipulated period?: Most lenders can allow what they called "differed payment".But you must pay the interest rate as stipulated on the loan agreement.Some can allow such differement,but it must not exceed the next pay check.But that will mean double APR(interest).