Assess Your Financial Situation

The first step to effective money management is understanding your current financial situation. Before you can make a plan, you need to know where you stand. This involves:

Budgeting: Start by tracking your income and expenses for at least a month. Apps like Mint and YNAB (You Need A Budget) can make this process easier. Analyze your spending habits and identify areas where you can cut back.

Calculate Your Net Worth: To do this, add up all your assets (savings, investments, property) and subtract your liabilities (credit card debt, student loans, etc.). Your net worth is a snapshot of your overall financial health.

Establish Clear Financial Goals: Determine what you want to achieve in the short term and long term. Your goals may include building an emergency fund, paying off student loans, saving for a home, or investing for retirement.

Create a Budget

Once you have a clear picture of your financial situation and goals, it’s time to create a budget. A budget is a roadmap for your finances, ensuring that your income aligns with your expenses and goals. Here’s how to create an effective budget:

Categorize Your Expenses: Divide your expenses into categories like housing, food, transportation, entertainment, and savings. This makes it easier to track your spending.

Set Spending Limits: Allocate specific amounts to each category based on your financial goals and income. Be realistic and ensure that you can stick to the budget.

Use a Budgeting Tool: There are many budgeting apps available, such as Personal Capital, EveryDollar, and PocketGuard, that can help you track your spending and stay within your budget.

Review and Adjust: Regularly review your budget and make adjustments as necessary. Life is dynamic, and your budget should adapt to changes in your income and expenses.

Build an Emergency Fund

One of the first financial goals every millennial should strive to achieve is building an emergency fund. An emergency fund is a savings account that covers three to six months’ worth of living expenses. It serves as a financial safety net in case of unexpected events such as medical emergencies, job loss, or car repairs. Here’s how to start building your emergency fund:

Determine the Target Amount: Calculate your monthly expenses and aim to save at least three months’ worth. Over time, work towards saving six months’ worth of expenses.

Set Up an Automatic Transfer: Schedule an automatic transfer from your checking account to your emergency fund savings account each month. Treating this as a non-negotiable expense will help you build your fund steadily.

Keep It Separate: Your emergency fund should be in a separate account from your regular savings or checking account. This will prevent you from dipping into it for non-emergencies.

Pay Off High-Interest Debt

High-interest debt, such as credit card debt, can be a significant barrier to achieving financial stability. The interest on these debts can accumulate quickly, making it challenging to break free. Here’s a strategy for paying off high-interest debt:

Prioritize High-Interest Debts: List your debts in order of interest rate, with the highest interest rate at the top. Focus on paying off the highest interest debt first while making minimum payments on the others.

Consider Consolidation: Explore options for consolidating your high-interest debts into a lower-interest loan or a balance transfer credit card. This can help reduce the interest you’re paying and make it easier to pay down the principal.

Create a Debt Repayment Plan: Develop a realistic plan for paying off your debts. Allocate a portion of your budget to debt repayment and stick to it.

Avoid Adding to Your Debt: While paying off your high-interest debt, avoid taking on new debt. Cut up your credit cards if necessary and adopt a cash or debit card-only approach to spending.

Save for Retirement

Retirement might seem like a distant goal, but it’s essential to start saving early. The power of compound interest means that the sooner you start saving, the less you’ll need to contribute to your retirement fund in the long run. Here’s how to get started:

Take Advantage of Employer Benefits: If your employer offers a retirement plan, such as a 401(k), take full advantage of it. Contribute enough to get any employer match – this is essentially free money.

Open an Individual Retirement Account (IRA): If your employer doesn’t offer a retirement plan or you want to save more, open an IRA. There are traditional and Roth IRAs, each with its own tax advantages. Consult with a financial advisor to determine the best option for you.

Contribute Regularly: Make retirement savings a regular part of your budget. Set up automatic contributions to your retirement accounts, and increase your contributions as your income grows.

Diversify Your Investments: Invest your retirement savings in a diversified portfolio of assets, such as stocks, bonds, and mutual funds. Diversification helps spread risk and maximize potential returns.

Invest in Yourself

Investing in yourself is a long-term strategy that can significantly boost your earning potential and overall financial health. Here’s how to invest in yourself effectively:

Pursue Education: Consider furthering your education or obtaining certifications that can enhance your career. A more competitive skill set can lead to higher-paying job opportunities.

Improve Financial Literacy: Invest time in learning about personal finance. There are many books, online courses, and resources available that can help you make informed financial decisions.

Network and Build Relationships: Building a strong professional network can lead to job opportunities and career growth. Attend industry events, join professional organizations, and use platforms like LinkedIn to connect with others in your field.

Focus on Health and Wellness: Staying healthy can save you money in the long run. Invest in your physical and mental health by eating well, exercising, and seeking preventive healthcare.

Set Specific Financial Goals

Setting specific, measurable, achievable, relevant, and time-bound (SMART) financial goals is crucial for long-term financial success. SMART goals provide clarity and motivation. For example:

Specific: Instead of a vague goal like “save money,” set a specific goal such as “save $5,000 for a down payment on a house.”

Measurable: Make your goals measurable, so you can track your progress. “Pay off $10,000 in student loans” is measurable.

Achievable: Your goals should be realistic based on your current financial situation. Setting an achievable goal will prevent frustration and disappointment.

Relevant: Ensure your goals align with your values and long-term objectives. Your goals should be relevant to your life.

Time-Bound: Set a deadline for achieving your goals. For instance, “save $10,000 for a vacation by December 2023.”

Automate Your Finances

Automation is a powerful tool for money management. By setting up automatic transfers and bill payments, you can ensure that you consistently meet your financial goals and obligations. Here’s how to automate your finances:

Set Up Automatic Bill Payments: Most banks offer online bill pay services. Automate recurring expenses like rent or mortgage, utilities, and credit card payments to avoid late fees.

Create Automatic Savings Transfers: Schedule automatic transfers from your checking account to your savings and investment accounts. This ensures you consistently save and invest without thinking about it.

Use Apps and Tools: Many financial apps and tools, like Acorns and Robinhood, can help you automate investing and savings, rounding up purchases to invest spare change.

Review and Adjust: Even with automation, it’s essential to regularly review your accounts and transactions. Ensure that your automated processes are working as intended.

Protect Yourself Financially

Financial security goes beyond just saving and investing; it also involves protecting your financial well-being. This includes insurance and estate planning:

Health Insurance: Ensure you have adequate health insurance coverage to protect against unexpected medical expenses. Many employers offer health insurance, but if not, explore options through the Affordable Care Act or private insurance providers.

Renters or Homeowners Insurance: Protect your property and belongings with renters or homeowners insurance. This coverage can help replace your belongings in the event of theft, fire, or other covered events.

Life Insurance: If you have dependents or loved ones who rely on your income, consider life insurance. Life insurance can provide financial support to your family in case of your unexpected passing.

Create an Estate Plan: Even if you’re young, it’s wise to create a basic estate plan, including a will, power of attorney, and healthcare directive. This ensures your assets are handled according to your wishes in the event of your incapacitation or passing.

Continuously Educate Yourself

The financial world is constantly evolving, and staying informed is crucial to making sound financial decisions. Here’s how to stay educated about money management:

Read Books and Blogs: There are countless books and blogs on personal finance and investment. Some recommended authors include Dave Ramsey, Suze Orman, and Robert Kiyosaki.

Take Online Courses: Numerous online courses cover various financial topics, from budgeting to investing. Platforms like Coursera, edX, and Udemy offer a wide range of options.

Listen to Podcasts: Many podcasts, such as “The Dave Ramsey Show” and “The Clark Howard Podcast,” offer valuable financial advice and insights.

Attend Workshops and Seminars: Local community centers, universities, and financial institutions often host financial workshops and seminars. These events can provide valuable in-person learning opportunities.

Consult with Professionals: If you have complex financial needs or goals, consider consulting with a financial advisor or planner. They can offer personalized guidance and investment strategies.

Conclusion

Money management is a vital skill for millennials, and by following these steps, you can take control of your finances and secure your financial future. Remember that financial success is a journey, and it requires discipline and patience. Start small, set achievable goals, and gradually work your way towards financial stability. With dedication and the right strategies, you can build a strong financial foundation that will serve you well throughout your life. Don’t forget to continuously educate yourself and adapt your financial strategies as your life circumstances change. By doing so, you’ll be well on your way to achieving financial success as a millennial.

The post Money Management for Millennials: A Step-by-Step Guide appeared first on Mobile Marketing Watch.

With consumer confidence still soaring early in this new year, it comes as no surprise that freshly published survey data from Clutch, a well known B2B ratings and reviews firm, shows that 59 percent of small business owners expect their revenue to grow in 2017.

According to a report summary from our friends at VRJournal, those rosy expectations for future revenue are leading 49 percent of small business owners to anticipate spending more on marketing and advertising.

The Clutch “2017 Small Business Digital Marketing Survey” queried 350 small business owners and managers.

“Plans to invest more in digital marketing came after reports of modest investment in 2016 More than half of respondents (68 percent) reported spending less than $100,000 on marketing in 2016, with 41 percent spending less than $10,000.”

And where will those small business owners spend their advertising dollars?

Of course, they’re looking at digital marketing options. The survey suggests they are “most eager to increase investment in paid social media (58 percent), a website (56 percent), email marketing (39 percent), and SEO (35 percent) in 2017.”

Experts interviewed pointed to SEO strategies that prioritize local searches as a key trend to watch.

To learn more, check out the full report and survey data here.

The post Feel Optimistic? 59 Percent of Small Business Owners Do, Plan to Up Spending appeared first on Mobile Marketing Watch.

“Launched in 2013 by RationalHeads Technologies, a fast growing Indian tech start-up, Earn Talktime till date has dispersed virtual currency worth over 50 crore rupees and empowered 13 million youth in India to earn money in their mobile wallet by discovering and engaging with mobile applications and brands,” according to a news release shared with MMW.

Its growth rate of 110 percent in 2015-16 means Earn Talktime has captured 40 percent market share of the mobile advertising ad-funded wallet industry.

Now the company hopes to grow at 50 percent YOY for the next three years, as well as add new products and expand outside of India.

“Data and telecom cost takes 15 percent of a user’s share of wallet in India,” said Sandeep Mirakhur, Co-Founder and CEO at RationalHeads Technologies. “It is also the biggest inhibitor to mobile app adoption by users especially the early adopters like the youth. We wanted to help subsidise the spending costs of the youth and hence launched Earn Talktime in India 18 months back. We have empowered this category of users with additional purchasing power in the form of virtual currency which can be easily earned by engaging with mobile applications and by performing actions within Earn Talktime.”

Interestingly, students represent 73 percent of the Earn Talktime user base.

“With 85 percent of Earn Talktime subscriber base below 25 years of age, the company is currently driving over 10 million mobile app installs and brand engagements for its advertising partners every month,” the statement concludes.

“Consumer brands have been figuring out new ways to engage with early adopters who were scattered across traditional and digital platforms,” said Sandeep. “Earn Talktime is enabling brands to create virtual experience zones that allows sampling of mobile applications by potential users without worrying about mobile data usage or cost.”

The post India’s ‘Earn Talktime’ Is Largest Ad-funded, Virtual Currency Platform appeared first on Mobile Marketing Watch.

The problem?

“It doesn’t make for a particularly good user experience and may actually turn people off using the app.”

Could native ads in apps make a difference? BetaNews interviewed Yannis Dosios, VP of Yahoo Publisher Services, to discuss the issue. The whole interview is worth a read.

“At Yahoo, we believe advertising doesn’t have to compromise how users enjoy an app, and that advertisements should, and can, complement the user experience,” according to Dosios. “This is why Yahoo introduced native advertisements inside its own mobile applications. What makes these advertisements native is how seamlessly they are integrated into the user experience. For example, users scrolling through the Yahoo Finance application articles see a native advertisement after every few pieces of content. This ad has the same look and feel, and layout as the other content sections, while clearly denoting that this content is sponsored.”

Does it work, bottom-line?

“What we have found is that these native ads deliver significantly higher revenue and eCPMs (revenue per thousand impressions) than the traditional banner or full-screen interstitial advertisements,” says Dosios. “We also have found that these ads perform well for advertisers, delivering superior click-through rates and post-click conversion rates. Users notice and engage with these advertisements.”

When it comes to trends in the mobile advertising market, Dosios admits it’s a rapidly changing marketplace. But he did make some observations of interest.

“The main trends I would call out are the growing interest of brands in spending more on mobile — in recognition of the very rapid increase in mobile usage and the increased advertiser focus on measurement and impact assessment from mobile campaigns.”

Dosios also cites the growing importance of data and programmatic for more precise and better optimized advertising campaigns.

And clearly, says Dosios, the rapid growth of native and video ad formats are market-transforming.

The post BetaNews Interview: How to Monetize Without Undercutting User Experience? appeared first on Mobile Marketing Watch.

We’re talking about mobile money and payments platforms.

One of the many standouts generating buzz is Singapore-based CoinPip, which is launching an open beta of their new money transfer service at SXSW.

We’re told CoinPip’s user-friendly international payroll app is launching in four countries.

Businesses in Singapore, Hong Kong, Indonesia, and the USA, can start sending money to their remote workers in Indonesia using this app quite easily. CoinPip leverages bitcoin to transfer money from one country to another at great ease where both the senders and receivers do not need to know about bitcoin.

“Bitcoin is moving on. The power is not just in the currency, but in the technology.” says Anson Zeall, Co-founder and CEO of CoinPip.

The post Digital, Mobile Money Services Are Hot in Texas for SXSW appeared first on Mobile Marketing Watch.

According to Lucian Armasu of Tom’s Hardware it doesn’t matter that Intel actually had a decent year, reaching $55.9 billion in revenue and $11.7 billion in profits last year. Intel’s mobile division underperformed, bleeding more than $4 billion, adding to the $3.1 billion it lost the year before.

In other words, Intel has blown $7 billion in mobile in the last two years. That’s more dough than many chip firms are even making in the current marketplace.

Why the Intel losses?

“The company invests heavily in mobile from R&D to marketing, but the single biggest factor is that Intel has been essentially paying OEMs to use its chips in devices,” explains Armasu. “This is why we can see Atom-based tablets such as the Nokia N1 cost only $250, despite having specs similar to a $400 iPad Mini 3.”

Industry insiders believe it’s a short term loss for Intel that the company hopes will lead to long term survival.

“Intel hopes that by getting enough OEMs to use its chips, even if it has to pay those companies, Atom processors will become more popular in the mobile market with consumers, who will then begin to demand Atom devices from OEMs,” Armasu adds.

What will happen in 2015? That may be hard to discern, especially with Intel discontinuing its reports on mobile reports to shareholders. It’s a move Intel can get away with by integrating its mobile and PC divisions.

The post More Mobile, More Problems for Intel appeared first on Mobile Marketing Watch.

Several months ago the city requested proposals from companies willing to provide the service and the city staff have returned to recommend Parkmobile USA. Other companies who submitted bids include CALE, IQA, MobileNow, Pango, Passport, and Software for Good.

If approved by City Council, the technology would be made available in 2015, following a limited field test. The system is expected to have “minimal to no cost” according to the report.

It may reduce parking capital costs, since there could be less need in the future for physical pay stations.

The mobile payment systems allow drivers to easily add money to their parking meter by using a smartphone app or placing a phone call.

Additional benefits envisioned include text messages to alert users their space is about to expire, and allowing users to pay for a space while inside their vehicle during severe weather.

The post Mobile Parking Payment System Coming to Minneapolis appeared first on Mobile Marketing Watch.

But according to the data presented in a new infographic from FICO, there’s often a gap between what mobile services customers want and what their banks offer.

Getting it right can drive big benefits for both bank and customer, they say.

The infographic combines industry survey research findings on market demand and issues of concern, along with FICO customer results in key areas.

The data reveals that 62% of borrowers in the US and the UK believe that the biggest communications problems with their banks relate to technology. A large segment of borrowers in each market want more tailored services akin to what they now expect from retailers.

To learn more, check out the fascinating inforgraphic below and explore mobility’s evolving role in banking, credit and fraud.

The post Infographic: What’s Really Going On in Mobile Banking appeared first on Mobile Marketing Watch.

A state regulatory body has notified the mobile payments giant of a cease-and-desist order born of allegations that Square is dealing with payments in Illinois without proper licensing.

Late last week, Square confirmed the existence of an issue and said the following about the matter:

“We’ve been in close contact with the Illinois Division of Financial Institutions for several months and are addressing their concerns.”

In the last five days, however, not much else has been learned about the situation. As far as we can tell, Square still isn’t permitted to do business in Illinois.

Although Illinois state law dictates that “no person in this state in the business of selling or issuing payments instruments” without appropriate licensing, supporters of Square say this doesn’t apply to the company because it doesn’t hold funds like a financial institution would.

The post Square Suffers Mobile Payments Setback in Illinois appeared first on Mobile Marketing Watch.

According to documents filed Thursday with the Securities and Exchange Commission, mandatory disclosure statements indicate that a handful of hedge funds parted with more than one million shares of Apple in the home stretch of 2012.

Noted stock pickers including Leon Cooperman, Eric Mindich and Thomas Steyer unloaded billions of dollars of Apple shares between September 30 and December 31, according to disclosure documents filed on Thursday.

Despite shares still trading at a relatively abysmal $466, Reuters reports that a growing number of analysts and traders expect AAPL to rebound significantly in 2013.

“The stock just went up so much in early 2012 and then was coming back to earth,” says Justin Walters, co-founder of Wall Street research firm Bespoke Investment Group. “Three months from now, we’ll be seeing a lot of the people who sold starting to pick it up again.”

The post Hedge Funds Blamed for Apple’s Beat Down appeared first on Mobile Marketing Watch.