The average poverty rate of the Caribbean population is approximately 30%, according to the GSDRC website. Factors such as the lack of financial literacy, significant student loans, and bad credit continue undermining financial wellness among individuals. Creating personal wealth in a society where debt and the wealthy drive the economy is not exactly manageable either. However, with the right tools and practices, there are ways you can improve your financial status.
Curb Bad Spending Habits by Setting Personal Budgets
In this digital era, online marketing on social media influences unnecessary purchases, and mobile payments disconnect people from money. Using credit cards makes people believe they have more than enough, and as a result, they spend more on things they don’t intend to use. Creating a personal budget helps people keep track of their finances, prioritize spending, and savings. However, budgeting is difficult as it is one reason only a third of American households have a detailed financial set up. Thus, you must be committed to planning your finances and sticking on a budget.
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Get Rewards on Credit Cards
Credit cards are popular when it comes to buying luxury items or paying for holidays. It is no surprise that spending on cards globally will hit $45 trillion by 2023. Making purchases with credit cards is exciting but also a leading cause of economic hardships. Leveraging rewards on credit cards is a common tactic people used to control spending. With a rewards credit card, you will earn points for every purchase. Consumers often use reward points or rebates to shop or pay bills online, depending on the terms and conditions. However, it is important to educate yourself about cashback credit cards and its requirements before you apply.
Savings and Contributions Make a Difference
Millennials are conscious about building a savings for retirement and maintaining an emergency fund. This is something that previous generations rarely considered at an early age. During a recent survey, 49% of millennials said they were saving for retirement, and 64% were depositing money in their emergency funds. These numbers reveal that there is no perfect time to open a savings account. Individuals only need to find a bank that offers flexible terms and reasonable interest rates to build and maintain a savings account.
Managing your finances is the only way to experience financial freedom. Without a budget plan, keeping track of your income and expenses can be stressful. You will also need to find effective ways to limit your credit card spending to prevent any potential future debts.
