Planning your financial future is an essential step towards adulting, but many young people don’t know how to get started. Ariel Carr is a digital selling expert, and her courses have helped numerous people get their finances under control, earn a side income, and even make six figures. Here are some of her top financial tips for Millennials and Gen Z.

Use the Power of Compound Interest

Compound interest is simply defined as “interest on interest.” Basically, you’ll make a lot more money if you start investing as early as possible. “I teach my students about compound interest first and foremost,” said Ariel Carr. “Invest as early as possible, and you’ll end up with a ton of money when it’s time for retirement.”

Make a Budget

It can be hard to keep track of how much you’re spending on a daily basis. For this reason, making a budget is essential. There are tons of tools online to do this, or a spreadsheet also works fine. “Whatever gets you back in control of your spending and allows you to save.” The goal is to start tracking your spending habits to bring awareness to your personal finances.

Use Credit Cards Responsibly

Credit card debt is one of the worst types to have, so you should avoid spending more money on your card than you can pay off every month. “It’s easy for credit card debt to get out of control, so enforcing restraint is essential here,” said Ariel Carr. One should strive to pay off their credit cards in full each month.

Create an Emergency Fund

Overspending often results in having not enough for an emergency fund. This money should be kept in a high-yield savings account and cover between three and 12 months of expenses. “This will also prevent you from spending on unnecessary things through your credit card,” said Ariel Carr.

Build Up Your Credit Score

Your credit score dictates whether you’ll be able to rent an apartment, buy a home, or get a new car. There are safe ways to do this, like getting a credit card and only spending a small amount every month. “Never miss any payments like rent or loans to maintain your credit score,” stressed Ariel Carr. If you need extra help with your finances, consider consulting Ariel Carr to improve your money situation exponentially.