As a young millennial, you are likely in the initial years of your career. At this stage, when you’ve just started earning your paychecks, knowing how to manage your money or what to spend your money on can seem daunting. So, we’ve listed a few simple tips to help you avoid making certain key money mistakes.

Set Up Automatic Savings

Once you start earning, you’ll be able to estimate how much you can save regularly. Once you know this, ensure you set up automatic transfers from your checking account to your savings account. This will help you manage your spending.

Don’t Overdraw Your Checking Account

Make sure to keep a track of your balance in your checking account so you don’t overdraw accidentally. Keep in mind that most banks will allow you to overdraw your bank account, however, you will be charged a hefty overdraft fee.

Build Credit

If you are newly employed, now is a good time to start building credit. If you have an outstanding student loan, it’s likely you already have a credit history. You may also want to get a basic credit card and pay off your bills on time to improve your credit score. It’s a good idea to check your credit score from time-to-time to ensure you are on the right path, financially speaking.

Create An Emergency Fund

Before you start saving or investing your money, ensure you create an emergency fund. This will help you tide over financially difficult times if you were to lose your job.

Start Saving For Your Retirement

It’s never too early to start saving for your retirement. So, make sure to take part in your organization’s 401(k) plan, even if you are only able to make the minimum contribution right now. As you advance professionally and your income increases, you can make higher contributions.

Repay Debts On Time

Remember that not repaying your bills or loans on time can impact your credit score, which can make it difficult for you to get approved for loans and credit cards in the future.

Putting these tips into practice and keeping an eye on your money will set you on the path to financial success!