In our last blog, we discussed the results of the USB survey, which indicate that women are shifting financial planning to their partners. If you remember, the highest population for it was millennial women. Millennials are known to be an easy target for ridicule, but it may be time that previous generations help them pull up their bootstraps when it comes to financial planning.
Millennials are the fastest growing group in the workforce, dealing with the challenges of graduation during a recession and the continuing wage gap. Combine these factors with the likelihood of taking the time to have children and a longer lifespan. Mastering finance and long-term planning is more important than ever.
Another complexity is that most millennials are raised by parents who live with high debt ratios. Baby boomers were raised with the fear of owing money, and focused on avoiding it and paying it back as soon as possible. The next generations received loans like sweets and were spoiled. Learning from examples may not be the best course of action. So we’ve put together some advice for the aspiring company.
- Spend carefully . Think along the lines of “Think Before You Speak” before you buy. Evaluate the long-term benefits of this article for you. When it comes to the cost of nickel and cents, such as your daily dose of chic coffee, invest in a chic espresso machine at home.
- Create an escape plan. Life often presents us with challenges and true strength comes from being able to choose your own path. When you have thrown away some money, you can make the right decisions and prevent you from going back to what kept you in debt.
- Set up an automatic deposit from your paycheck to an account that you cannot easily access. That way you never had the money so you can’t miss it.
- Funnel your winnings. Instead of “treating” yourself with your birthday presents, tax returns or bonuses, treat your future self by adding it to your savings account.
- Manage your debts. They grew up in a time when loans and debts, from student loans to car loans to credit cards, were granted. Make a list of all debts and the corresponding interest rates. In this way, you can prioritize which debt you want to pay off the fastest. High yield debt should be the first goal to stop the cycle of transferring your money to an institution.
- Save for your future. It’s hard to look that far when you’re in your 20s, but imagine the freedom to live your life the way you are older. With a few sacrifices, you can save now and play later.
The millennial generation is committed to the importance of equality, empowerment and independence. As a millennial, it is your responsibility to implement changes in your life that correspond to your values. If you want to have control over your destiny, you have to control your money. Money brings freedom and freedom brings independence. Take control of your finances and thus your financial future.