The money mistake you're probably makingCredit card bills piling up? Use these tips to avoid a lifetime of financial woes
But this younger generation isn't necessarily reckless with their money. "They've racked up enormous amounts of student debt," says Dunn. "There are also many things that people consider necessities today--like a car--that others didn't think of as necessities before."
Need another reason to curb your spending? Women are more likely to stress about debt than men, according to a follow-up study by Dunn and her colleagues. So whether you're deep in debt or working hard to avoid it, use these tips to stay on top of your finances:
Double your minimum payment
Here's some good news: Research showed that when the minimum monthly credit card payment is raised just a little, it causes people to pay back even more, which means you'll get out of debt quicker. "It has a psychological impact on people," says Dunn. "It makes them take repaying more seriously. In the end, everything costs less if you pay off faster." Since you can't control what the bank asks for, make your own rule and stick to it. If your bill
says you owe a minimum of $50, make it $100.
Forget your friends' finances
When it seems like everyone is suffering the same money woes, it can make you less serious about taking control of your spending. "It's still not the norm to carry credit card debt, but many think it is," says Liz Weston, financial expert and author of The 10 Commandments of Money. "Don't take comfort in thinking everyone else is in debt."
Pick the right plastic
Those fancy reward cards are great, but their rates can be higher than normal. If you're paying your bill in full every month, go for it. "But if you're carrying a balance on your card, look for one with a low rate instead," says Weston. And read the fine print--some cards are made for really big spenders.
Check out these tools
Websites like Mint.com let you track your spending so you can figure out where you budget needs some work. You can also set up helpful text alerts from your bank. Need to save for a big purchase? Set up an online account somewhere like Ally or ING Direct, says Weston. They'll let you set up free sub-accounts that will automatically subtract savings each month.
Don't forget the future
It may seem way too far away, but the best time to start saving for retirement is in your twenties and thirties. Even if you're paying down student loans and credit card debt, keep a little money stashed away in savings so that it gains interest. "People think, 'I have my whole life to save,' but that's not how the math works," says Weston.
Know when to wave the white flag
Unfortunately, if your debt becomes unmanageable, it's better to get help sooner rather than later. "If your debt is equal to half or more of your income, it's time to talk to a credit counselor or bankruptcy attorney," says Weston. Check out the National Foundation for Credit Counseling at NFCC.org for help.
your life, inspired
Happy summer solstice, the celestial event celebrating the longest day and shortest night of the year. Here are 9 summer solstice traditions:
Where in the world do you want to go? Somewhere unique? Any of the places described here are sure to make your next world-travel adventure truly memorable.
When you stumble upon an unflattering photo of yourself, you can make excuses for it, or you can change your ways.
There's nothing more satisfying than watching your cash reproduce. We found six easy ways to grow your savings, starting with as little as $70.
Considering booking a single ticket? Read this first.
The terrorist attacks on September 11, 2001, were horrific, but many of the stories that have come out of that tragedy offer lasting hope and inspiration.
August 28 marks the 50 year anniversary of the March on Washington and Dr. Martin Luther King, Jr.'s "I Have a Dream" speech. Those who were moved by the 1963 March on Washington share all the ways that moment has inspired them over the years.
People who are happiest and most successful have one key thing in common: If they take an emotional hit, they don't ball up in the fetal position and give up.
You don’t have to wait for Friendship Day, the first Sunday in August, to let your love for your friends inspire you to show them how much you appreciate them.
Instead of visiting your usual travel destination this summer, take your family on an inspirational trip. These 20 travel spots are big on fun and culture.
Lounging, learning, drinking — that pretty much sounds like the best girls trip of our lives. Wine-os, no matter where you live, or how far you'd like to go, we've got your vacation covered.
You schedule time with your husband, kids, and friends, but sometimes you need to pencil in a little me-time, too. Make it fun with these solo adventures.