There are a number of things to consider when you move to the United States: culture, legal steps and financial considerations. The financial aspect might be one area where you need to pay close attention to. Getting everything right when it comes to your finances is hard. If you are starting along your financial journey, you might find different tips on the internet on what to do, but it is important to understand the basics. In this article you will find a financial guide for first gen hispanics that live in the United States.
It’s common with many that personal finance is hard to learn and can be very confusing, especially if you have just arrived in the United States and are working on getting all your paperwork done. Just know that with the correct guidance, it is not as hard as you might think. In this financial guide, you will find everything you need to help you with your personal finances as a first gen hispanic living in the United States.
Value of money
In the United States, money is worth more than almost any other country. To overcome this struggle, you might want to start creating a budget that fits your current situation. This will help you prepare for the future, and it will be a step closer to financial freedom. In this housing article we talk about different types of budgets. The most common types of budget people use are the “30% rule” and the “50/30/20 rule”. Since you may be focusing more on your general financial planning right now, you might want to use the “50/30/20 rule”, where you will spend 50% of your income on needs, 30% on things you want, and 20% on debt repayment and savings.
For the savings section, we also have an article on how much you should save for your retirement depending on which stage of life you are currently in. It depends a lot on what you would want your retirement to look like, but the article is a great guide to define your goals and to start mapping out a savings plan.
There are also some budgeting apps to help you to keep track of your money and have better control over it. You can also keep a handwritten budget, but budgeting apps might help you stay more organized.
Building your credit goes beyond getting a loan or paying for something at a grocery store. Limited credit history can create struggles in your future. You might get rejected when you apply for loans, credit cards or if approved, you will get harsh interest rates. This might even make it harder for you to pay for a house or education for your kids. As a member of the hispanic community, focusing on building credit and having a positive credit history can help you build wealth for future generations in your family.
The first thing you need to do to build your credit is have a Social Security Number (SSN) or an ITIN. In this article we talk about getting loans without a Social Security Number and explain the process to obtain an ITIN. We also discuss how to become eligible for different financial products that will help you build credit.
After you get a Social Security Number or ITIN, you are now able to apply for a credit card. You have three different options:
This is the easiest way to get a credit card and start building your credit. This type of credit card is for people trying to rebuild their credit or that do not have any credit history. You will be asked to make a security deposit, which will be your credit line, but eventually you might be considered for a better product, such as an unsecured credit card. In this article we talk about some options you have for secured credit cards.
- Credit Cards for people with bad credit
Some financial institutions offer credit cards for people with poor credit or with no credit history at all. Even though this idea sounds better than getting a secured credit card, keep in mind that these credit cards often come with higher fees and interest rates.
This is the typical credit card. It might seem like the credit card to go for, but keep in mind that it is also harder to get accepted when you apply. If you plan to apply, see all your options and consider things such as interest rates, annual fees, rewards and intro bonus.
When you start building your credit, check your credit score for free and keep a record of how you are doing in your credit building. When you get a credit card, be careful with it and use it wisely. Keep your utiilzation low and try to pay your debt in full every month to avoid carrying a and paying interest on your credit card. These habits and paying off your balance on time will demonstrate that you are a reliable person and your credit score will eventually start to go up.
At Crediverso you will find various tools and information that will help you with your financial goals.