Over the past few months, we’ve done our best to lift unimportant financial discussions in a way that reflects the financial concerns of millennials. We’ve discussed everything from managing credit debt to pursuing homeownership. These have all been important conversations, and I hope that from each article, you were able to take some actionable items and apply them to the ongoing pursuit of your financial goals.
That being said, these discussions do call for a bit of realism. Within each of these conversations, whether it’s taking on student loans, managing debt, considering financial coaching, or any of the other topics we’ve discussed, there are “best practices” that can be hard to sort through what your next step should be and why. But luckily for all of us, the answers to a lot of “this or that” financial questions boil down to a few simple tenets: accurate information, personal choice, and the importance of not going it alone.
Outside of pure luck, there is no way to make the best decision without making an informed decision – this is even more important when you’re talking about your personal finances.
Look at the big picture before deciding whether to apply for a personal loan, or whether to rent or buy. Make sure you know exactly how every single provision of each agreement you enter into will affect you in both the short and long term. This information must come from reliable, historically accurate sources in order to ensure you can trust it. The experienced team here at Greenpath is ready and able to help you in this way, and many others.
Once you have all of the facts that you need to make the best decision, you’ll be amazed at how many choices you have. What portion of your income should you save every month? Should you lease a car or buy a car?
Each of us might answer these questions differently, and our life circumstances will also dictate which options we choose. The most important thing is that you have a well-reasoned, long-term vision of where you want to get to financially. Any decision you make should be tied to how you prioritize where your life circumstances are now, and where you want them to be down the road.
But while we do have a ton of choices with our finances, there are some things that we should avoid no matter the circumstances. First off, don’t go it alone. Be sure to understand the full situation you face regarding any collections notices you receive if you’re behind. Never sign a loan promissory note without understanding all of the provisions in it.
If ever you’re on the fence about a decision, talking to a certified financial advisor from a trusted national nonprofit can steer you away from avoidable financial missteps.
By following these three tenets, as well as using financial educational resources, you are creating a financial life that is informed, well-reasoned, and personal. The only thing left now is to go do it, and we’re here to help every step along the way.