Millennials in general are viewed as people in their late teens through mid twenties. However, let’s remember that the term millennial does not refer to an age range but rather a generation. Given that most millennials are now in their twenties or thirties, they’re living independently – or trying – and trying to find their own way in the world. Most importantly, they’re trying to make money, but that can be easier said than done. Studies have found that older generations were in a much better place financially at this age. When it comes to making and saving money, here’s some financial advice that can serve us, the millennials.
Make a budget.
The best piece of advice you should take on board if you want to improve your finances is to improve your mentality. You might want a bigger salary so that you can increase your earning power, but the best way to improve your finances is to focus on the things you can control. In particular, you should tidy up your spending habits. Once you’ve set a budget, the rest of the process becomes much easier. You’ll be able to figure out how much money you should set aside for necessities on a monthly basis. That way, you’ll know how much of your income remains for non-essentials. Of course,there could still be challenges to be overcome but budgeting can make it easier to spot areas of your life in which you should start cutting costs. I was in New York City recently and I realized how much cycling could save so many people money. Is that an option for you? Could you find ways to reduce your energy consumption costs? Start by tracking meticulously and you will be areas of opportunities.
Make investments now.
You might think that investments are only important to entrepreneurial types who are looking to increase their wealth or start their own businesses, but that isn’t true. Investing is something that people of all financial situations should consider doing as early as possible in life. The earlier you start, the more wealth you’ll accumulate for your future. A lot of millennials are not thinking about retirement yet but we should all keep it in mind. You’ll be glad that you made such smart investments in the future.
I’ve heard a lot and you probably have about real estate investments. I am not in that market yet but it is eventually a goal. For those looking to take that route, it might be worth hiring the experience of expert such as a real estate agency. An agency such as William Pitt could help you get started.
Make an emergency fund.
Emergency savings are so important to your financial stability. In life, not all expenses can be predicted. One of the best ways to improve your personal finances is to expect the unexpected. If you set aside a small portion of your earnings on a regular basis then you’ll slowly build up some savings that could help you out in the future. Whether it’s an unexpected car breakdown or an issue with your house’s plumbing, an emergency fund can help to cover unexpected costs so that you don’t have to dip into your credit card accounts and derail your monthly budget.
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