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Do You Know 8 Money Mistakes Previous Generations Made

Now that Generation Z, or the Zoomers, are now trickling into the workforce, it’s good to be aware of the financial mistakes your previous generations have made. Always approach your personal finances methodically. Learning from other people’s mistakes will most definitely benefit you in the long run. So, here are 8 money mistakes you should avoid:

Millennials 

Not Sticking to a Budget

One of the biggest money mistakes is not sticking to your budget. May people scoff at the idea of planning a budget because it does feel like you are limiting yourself. Others may tend to spend frivolously on status symbols, or things that society dictates they should have. But in general, following a budget doesn’t necessarily mean limiting your spending. Budgeting can also refer to simply tracking where your money goes. This can then encourage you to make better decisions in terms of which purchases to prioritize and which ones to skip.

Start by listing down your expenses for a month, and rank them according to necessity. In the following month, try to stop yourself from spending on the least important items on that list. Here're some tips on budgeting.

Not Having an Emergency Fund

CNBC reports that a growing number of millennials have no savings, with 46% of younger millennials (ages 18 to 24) and 41% of older millennials (ages 25 to 34) having absolutely $0 saved in 2017. Ideally, you should have six months' worth of your salary set aside as your emergency fund to address unforeseen costs like medical expenses, home repairs, and losing your job.

You can start by opening a separate bank account from the one you use on a day-to-day basis. Then set a monthly savings goal, and make sure to deposit at least some of your earnings to this account — keeping in mind the budget mentioned earlier.

Not Having a Credit Record

Millennials are more debt-conscious than the previous generation, hence our general tendency to avoid credit cards. The Washington Examiner notes that 28% of millennials use debit cards instead for the majority of their purchases. But sticking to mainly debit transactions may not be a good idea in the long run. It’s still important to build a credit record, especially if you plan to make car and home purchases in the future. Your credit profile is what lenders refer to in order to evaluate your risk. Without any credit history, they will have no basis.

Make sure you have your own credit account, but use it responsibly. Make sure to keep your credit card balances low and make your payments on time. These steps will help you get a good credit score, which is what lenders are looking for.

Not Saving for Retirement

Younger generations tend to delay starting their retirement savings. After all, retirement might seem a long way off. Add the fact that they have student loans to think about, plus they may not be earning as much as their parents used to at their age. However, the sooner you invest, the greater your compound interest will be. This refers to the interest gained on the initial principal and on the accumulated interest of previous deposits. If you need help saving for retirement, check out these helpful tips.

Boomers

Failing to diversify investments

Failing to spread investments into more than one area means that if something happens to the one investment, no options remain. Boomers are notorious for investing everything in one pot. In the past, baby boomers often made their money by following the instantaneous profit or “quick buck” strategy. Today, however, boomers may find themselves cash-poor because the quick buck markets failed.

Underestimating their life expectancy

When you think of money mistakes, this is probably not what comes to mind. People are living longer today than they did in the past. Many boomers underestimate how long they will live and do not plan properly for their retirement. When calculating what age to begin collecting Social Security, a person’s overall health should help to determine when to begin the process.

If you are in good health and think you will live to be at least 80, you can benefit by waiting until age 65 to begin collecting Social Security. A plan of 10 to 15 years of retirement used to be recommended, but today experts recommend planning for 15-20 years or more of retirement.

Sacrificing retirement for their children

Many baby boomer parents are maxing out their home equity line of credit (HELOC) or, even worse, borrowing from their retirement accounts to pay for their children’s college educations. Retirement accounts should be left untouched until actual retirement, and used to plan for things such as the possibility of long-term medical care and funeral expenses.

Divorcing and remarrying

When you think of money mistakes, you most likely will not think about marriage. Baby boomers are accustomed to multiple remarriages, which include multiple divorces. Along with those divorces come property settlements; starting over means losing equity. The more equity you have, the more the divorce may cost.

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10 Best Ways to Earn Extra Money This Month

If you’re looking to pay this month’s rent, you’re saving up for a big vacation, or you are trying to pay off your debt, you’ve come to the right place. Here are 10 ways you can make extra money this month. No matter where you are in life or how much work experience you have, here are 10 lucrative jobs that guarantee you earn extra money. 

1. Babysit, Pet Sit, or House Sit

If you don’t have many qualifications or you’re a student, you could make a decent amount of money just through babysitting. As of 20201, the national average had jumped to $18.36 an hour for one child. If you don’t have any connections in your neighborhood, try using Sittercity to find some babysitting gigs. 

If looking after children is not your forte, pet sitting can be another amazing option. A pet sitter can earn anywhere from $25-$30 a day. A 30-minute check-in could earn you up to $25 dollars. You can use apps such as Rover or Wag to find these pet sitting opportunities to make a little bit of extra money. 

Another option is to become a house sitter. You can earn anywhere from $12-$66 an hour depending on the gig. Your daily tasks may include bringing in the mail, watering the plants, dusting, or vacuuming. Some employers request that you stay overnight. If this job piques your interest, you can go to Housesitter.com

2. Sell Your Unwanted Belongings 

Exchanging your possessions for money is one of the easiest ways to earn extra money if you're in a pinch. Purging your valuables has other benefits, as well, such as reducing clutter and even forcing you to rethink your spending habits. You might be less tempted to whip out your credit card in the future once you realize how much junk you accumulated over the past few years. Some things you can sell include books, clothes, toys, bags, and decor. Check out this article by Trent Hamm for more information.

3. Participate in Research

From market research to medical tests, being a test subject offers an opportunity for people to fatten up their wallets with cash, checks, and gift cards. If you’re willing to try a new product or experience and share your thoughts with its creators, you could give your bank account a boost.

You can sign up for medical tests and trials through the National Institute of Health (NIH). They have 3,500 volunteers a year, but rates do vary depending on the trial. 

In addition to volunteering your body, you can also offer your mind. Try participating in psychological research. Most large universities have a research department that is looking for test subjects. You can go to Harvard, NYU, and the University of Maryland, just to name a few. Also, Stanford and Yale offer online opportunities if you don’t live near a larger university. Rates can vary from $10 to $50 an hour to a flat rate for participation.

4. Become a Freelance Writer

By being a freelance writer, you can earn extra money or make some passive income with your craft. You can write about your hobbies such as health and wellness, finance, cooking, interior design. Once you’ve found your niche, you’ll then have to find your ideal clients. Try going on Indeed, Flexwork, or Upwork to find your clients. What’s so amazing about becoming a freelance writer is that you can work from home and create your own schedule. If you want more tips and tricks on how to be a writer and blogger, you can check out Elna Cain’s website for more information. 

5. Play Games!

If you play video games on a regular basis, then why not make some cash while you’re at it. Playing games is an excellent way to earn a quick buck because you can do it right in the comfort of your own couch. Check out this extensive list of 30 apps that pay you to play games

6. Pick Up Micro Gigs

In the past decade, the gig economy has exploded and now there are hundreds of thousands of people out there who are looking to have “mico-jobs” completed for them. These small tasks can make you from $3 up to $100 depending on the gig. Although this is a way to make some quick cash, it is an extremely competitive market so you have to keep a lookout for any openings. Here are 18 job sites you can use to find online and community-based gigs. 

7. Take Online Surveys 

Making money by taking surveys won’t give you financial freedom overnight. However, it can make you a little extra pocket money and give you a little financial boost. Instead of mindlessly scrolling on your phone, try using that time to take a survey. Over time, those little moments add up and you’ll accumulate a significant amount of money. Here are 8 of the most popular sites you can use to take surveys.

8. Rent Out Your Spaces

Utilizing the empty space in your house or apartment can be another lucrative source of income. If you have an empty guest room, you rent it out on Airbnb if you want to earn extra money. Say you’re out on vacation for a week, you can even rent out your space and make money while you’re on a getaway. You can also rent out extra storage space such as a garage, basement, or attic. Because of the expanding gig economy, people no longer have to pay huge corporate chains, they can just pay you. If you want more ideas on how to rent out your space, check out this article by Money Crashers.

9. Teach English

Thanks to the power of the internet, you can now make money from all over the world just by sitting in the comfort of your own home. iResearch, a marketing research and consulting company in China, reported in 2018 estimates China’s online language education market will reach 543.4 billion yuan ($77.39 billion) by 2022. Even globally, there’s plenty of opportunities to make money teaching English online. The best part is, you don’t need teaching qualifications for many of these websites. The higher-paying gigs do require a bachelor’s degree, but you can easily go without. Learn more about teaching English online here. 

10. Sell Stock Photos

If you are more artistically inclined, consider selling stock photos as your side hustle. Stock photos are simply a term for generic images that buyers use for the visual content from news stories, blogs, and websites, to design materials for ads or promotional materials. What matters most is the number of downloads you get because that equates to the amount of money you’ll make. It’ll take some time to build up your portfolio, so this side hustle does require a bit more effort compared to most. But once you get the ball rolling, you’ll be able to make a lot of passive income. Here’s an extensive guide to help you out

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About Vola:

Vola Finance can advance you up to $300 at NO INTEREST. Vola Finance can make sure your bank balance does not get too low and alert you before it does so that you don’t pay overdraft or NSF fees. Furthermore, Vola Finance breaks down your spending pattern to help you budget your upcoming expenses and find ways for you to save.

Vola supports over 6000 banks and credit unions and uses one of the nation’s largest bank connection providers to securely establish a link to your account.

Vola is transparent. There are NO HIDDEN FEES Vola operates by charging a subscription fee, there are no other charges. If the features offered by Vola are not compatible with your bank or phone, Vola Finance will refund you your subscription fee.

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