From a young age, we’re taught to save our money for the things we want. Typically, these are short-term financial goals, such as saving up $20 for a new toy, or $100 for a bicycle.

Saving money is a financial management skill that can serve you well throughout your life, but rarely do you learn about the financial techniques that could impact your future, either positively or negatively.

Take your financial knowledge far beyond the basics of savings accounts and piggy banks by learning about the following factors.

Credit Scores

As soon as a potential lender or credit card issuer requests to see how credit-worthy you are, your credit score begins. While it starts with very little information, it’s soon built on your payment history, credit mix, credit history length, credit utilization, and more.

A high credit score can make it easier for you to secure competitive lending rates. In contrast, a low score may require you to look for ways to boost it, such as authorized user tradelines. Essentially, tradelines allow you to piggyback on the good credit of other users to improve your own credit score.

While this method is a fast and easy way to boost your credit score and is preferred by tens of thousands of people, it doesn’t hurt to be aware of how to earn good credit in the first place.

This money management skill is one that you can learn from the time you are old enough to sign up for your first credit card, and it can serve you well throughout your lifetime. We’ve included some helpful tips below:

1. Only apply for credit when you need it
2. Pay your bills on time
3. Avoid getting too close to your credit limit
4. Dispute suspected errors

The higher your credit score is, the easier you may find it to purchase property, be a preferred tenant by landlords, take out car loans, and more.

Mortgages

Finding the right mortgage for your unique needs takes time, patience, and plenty of research. Once you finally sign on the dotted line and put your key in the lock for the first time, you may think you can let those financial discussions become a thing of the past.

However, even though your mortgage repayments can tick away in the background, that doesn’t mean you shouldn’t turn your attention to them on occasion. The more attention you give your mortgage, the faster you may be able to pay it off.

There is undoubtedly value in speeding up the mortgage-paying process. You can save money on interest fees and free up money for later in life. Therefore, there can be no harm in thinking of ways to pay off more than the minimum amount each month.

Perform a few calculations to see how much room in your budget you have for additional payments. Even an extra $100 a month could make a considerable difference in your annual interest payments and debt levels.

You may also see the value in making bulk deposits if your loan structure allows. However, ensure your lending institute applies it to your loan’s principal rather than future interest repayments. Other mortgage repayment options include:

1. Refinancing to a shorter term
2. Changing your payment frequency
3. Looking into mortgage recasting

Investment Opportunities

If you have a significant sum of money sitting in a savings bank account earning a minimal amount of interest, you may see the value in learning some investment skills. While no investment is without risk, there is potential for you to make more money on your current savings than you are through letting it sit in a savings account. Several low-risk investment options may be worth considering, such as:

1. Savings bonds
2. Certificates of deposit
3. Treasury bonds
4. Money market funds
5. Stocks
6. Corporate bonds

If you have no immediate plans for your savings, doing your research and aligning yourself with an investment professional to view your options may be worth your while.

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Passive Income

As we grow up, we learn that the most common way to make money is by going to a nine-to-five job and receiving a paycheck at the end of it. However, you may be able to grow your future nest egg by looking at passive income options.

Investments count as passive income, but not everyone considers the risks of investments worthwhile. In this case, there are other ways to earn extra income without much effort. You could rent out rooms in your home on a short-term or long-term basis. You might even decide to sell your tradelines to help people boost their credit scores. Creating a blog, partaking in peer-to-peer lending, and trying affiliate marketing may also appeal to your bank account in the long term.

Financial Goals

There’s no harm in earning money without any plan for it, but doing so may increase the risk of you spending it aimlessly. Having financial goals can mean you’re putting your money toward something worthwhile, like a car, family home, investment property, business venture, or something else. The earlier you put a financial plan into motion, the sooner you may be able to meet your financial goals.

Emergency Savings

As worthwhile as it can be to make lump-sum payments on your mortgage and put your money into investment opportunities, it’s also essential to have an emergency savings account. This may not be something you think of in your youth but could be paramount in your future for a variety of reasons.

You might have expensive car repairs to pay for, a healthcare bill, unpaid time off work, or travel costs to visit a sick loved one. Unexpected expenses can arise at any moment, which means having a financial buffer can be imperative.

Your initial goal to work toward could be having three months’ worth of income set aside for a rainy day. This sum should be enough to cover all your bills if you cannot work for that period. However, any sum you put aside regularly can offer much-needed peace of mind.

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From a young age, your parents can teach you the basics, such as how to open a bank account and use a credit card. However, there’s so much more to learn that could negatively or positively impact your future. You now have the opportunity to make changes. Set financial goals, look at investment opportunities, and establish good credit. You can then lay the foundation for financial success.

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