Many Tennessee residents assume that debt problems are something that only impacts older Americans, and that young people have little to be concerned about when it comes to financial obligations. After all, most people in their early 20s have yet to purchase a home, start a family or tackle many other big ticket efforts. That view, however, neglects to consider the cost of funding a college education, or the risks that young people encounter when they rely on credit as they get their start in adult life. Many millennials have serious debt management needs, and are looking for ways to get and stay out of debt.
One of the most important things that young people can do to gain control over their debt scenario is to draw clear lines when it comes to spending habits. This is best accomplished by creating a budgeting system that relies on cash to make daily purchases. When that cash runs out, the spending must stop. Leaving credit cards at home and out of one’s wallet can heal reduce the urge to charge things that should be purchased with cash.
Another important thing to consider is how many of one’s spending decisions are made based on the lifestyle of others. Social media is a primary culprit in encouraging overspending. It is far too easy to scroll through photos of a friend’s tropical vacation or fancy new car and to begin justifying one’s own high dollar purchases. Young people should remind themselves that the life that people share online is not always the reality that they live at home, and appearances can be quite deceiving. Building a financial safety net may not be as glamorous as tan lines from a beach trip, but it will certainly last a lot longer.
For those in Tennessee who are interested in learning how to achieve real and lasting debt management, it may be helpful to sit down with an attorney who focuses his or her practice on financial matters. Having a professional go over the numbers can help millennials create a budget, savings plan and debt relief program that is in line with their needs and goals. That can go a long way toward building a financial foundation that will make the years to come far more enjoyable.
Source: CNBC, “5 things to do in your 20s to get out of debt by 30“, Emmie Martin, July 11, 2017