Gen Zer Told He’s ‘Going To Die Under a Bridge Broke’ — 10 Habits He Needs To Break
When Myles, a 23-year-old from Texas, appeared on Caleb Hammer’s Financial Audit YouTube show, he expected to share his financial difficulties and get some advice.
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Instead, he got a horrifying wake-up call when Hammer said that Myles was “going to die under a bridge broke.” The dire prediction got Myles to recognize the urgency for financial literacy education and the need to break poor habits.
What Not To Do
The reasons Myles presented for his financial mess were prime examples of what not to do. He shared that he had gone through his savings and was spending nearly $9,000 a month on partying and traveling — with a salary of $3,500 a month. And he spent his time working out rather than working full time to cover his spending.
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Financial Literacy Education
Clearly, Myles needed a better understanding of money management. Fortunately, there are many free options available, including these two excellent ones.
The Federal Deposit Insurance Corporation offers a Money Smart financial education program. With this program, you can learn about 14 different financial topics with games and other resources.
Khan Academy’s financial literacy course covers everything you need to know in a series of video lectures with class materials.
Poor Habits To Break
All the education in the world isn’t going to help if you don’t stop doing what got you in the situation in the first place. Myles and everyone else in his situation need to change their ways rather than fly by the seat of their pants and do what they’ve always done. Here are 10 poor financial habits that should be broken.
Not Having a Budget
It’s important to make a budget to keep track of what you currently spend and set amounts you can live with.
Not Setting Aside Money for Splurges
Set aside money for fun and splurges because you will have times when you just want to let go and do the crazy thing. Having money set aside for that will allow you to have fun without ruining your finances.
Not Having an Emergency Fund
Save enough to cover three to six months’ worth of expenses so that you’re not at the mercy of an employer or the economy.
Making Impulse Purchases
Wait before making an impulse purchase. These purchases are rarely things you actually need, and thinking it over may encourage you to not buy.
Not Setting Financial Goals
Set achievable financial goals for one month, one quarter, one year, three years and five years. Setting goals will help you stay disciplined with your finances.
Taking Out Too Much Debt
Don’t owe more than you can repay in two months. If you can’t pay for it immediately and you can’t repay your credit card within two months, you can’t afford it.
Making Just Minimum Payments
Make more than just minimum payments each month. New credit card statements require information about how long it will take you to pay off what you owe by making the minimum payments. Suffice it to say, it will be a lot longer than you think because of the interest charged.
Carrying Credit Card Balances
Don’t carry credit card balances because interest charges will increase the amount you owe — whether or not you make additional purchases.
Taking Cash Advances
Never take a cash advance. As a general rule, the amount you take is charged interest daily. Talk about a way to run up debt!
Not Paying Attention to Your Credit Score
Pay attention to your credit score. Request a free credit report or use a credit reporting app. Spotting any errors and working to stay in range can only help.
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This article originally appeared on GOBankingRates.com: Gen Zer Told He’s ‘Going To Die Under a Bridge Broke’ — 10 Habits He Needs To Break
