In our lifetime, making mistakes is unavoidable. Although the consequences of our mistakes can be hurtful, there are opportunities to grow and improve. As John Maxwell says, evaluated failures are sources of wisdom. However, it’s not always obvious when you’re making the right decision or when you are making a faux pas, especially if you haven’t had much guidance in a certain area. This article will not provide you all the right decisions related to your finances that you should be making today. In fact, we will only touch on a few topics that I believe millennials may struggle with.
Start by clearing up your debt incrementally
According to an CNBC article, millennials between the ages of 25 and 34 have an enormous share of debt of almost $45,000. When many are only making minimum payments or not reimbursing at all, the chances of ever being debt free are very slim. You may think that student loans are the impacting factor but, credit cards are the tool being used to dig the hole. Access to credit cards is now so common, and it’s easy to swipe them; after all, the money is not coming from your checking account instantly. As a relationship banker a few years ago, I observed that as the debt mounts up, consumers seem to get worse at paying it off. One of the reasons being the interest charged becomes so much higher and unbearable and people lose hope. Plus, the addition of multiple accounts worsens the problem.
No matter what the amount of the debt is, we can’t simply give up. We risk then the nightmare of never being able to be financially stable and leave stress free. Fixing the problem starts with a plan, whether small or aggressive. Allocating a certain amount each month to your debt is where to start. But, I do realize that you might have gotten in your situation probably because you run of our money every month. So, this is where being creative and making sacrifices are necessary. You may have to search for a better paying job or make some budget and spending adjustments. If necessary, reaching out to your bank and your creditors is recommended. By working diligently with them, a game plan can be established to come to agreeable terms.
Live within your means
The very first thing that you’re going to want to do here, is to make sure that you’re always living within your means. Millennials often complain that they barely make enough to survive. In specific cases, this might be true. However, living within your means involves choosing habits and accommodations that fit within your income circle. Plus, sometimes doing more than the minimum to earn more might be what is required.
Living on credit is only ever going to get you in trouble. So, whether you’re buying a car, clothes, vacations or anything else, you need to make sure that you can afford it. Because when you can live within your means, your financial future is always a lot brighter.
You can’t always keep up with your friends
You love your friends, but as you get older and move up in your careers, the differences between your incomes may become more pronounced. If your friend earns, say, twice as much as you do, you can’t be expected to keep up with their lifestyle. And if you’re the one bringing in all the money, try not to put pressure on your circle of friends.
Keeping up with the Joneses is a serious financial trap that can affect you for years. Avoid it.
Beautiful places such as Wyndham ridge estate would be perfect for anyone. The scenery is breathtaking. Unfortunately, we can’t all afford it so delaying gratification and avoiding bad financial moves are the wise decisions to make.
In conclusion, getting better with your finances simply means making the right decisions. It takes discipline and it may not be fun. However, in the long run, it pays dividends.
When working towards financial stability, it feels monotone and certainly at times boring. This does not mean that you can’t enjoy yourself. Find the things you want to do and if they fit your budget, treat yourself.