words Al Woods
Many people believe that people under the age of thirty-five are lazy or that they are not going to be able to be as financially stable as previous generations.
This has become such a negative stereotype against all millennials to the extent that they have come to believe this to be true. Luckily, this view is false and with the right steps and tips, any millennial can succeed financially and can gain complete financial stability.
Realize Your Income Potential
Many millennials do not realize the amount of potential they have when it comes to gaining more income. During this time of your life, you need to use your time in the smartest way possible and gain as much income as you can so that you are financially comfortable in the future. Do not limit yourself to one thing that can generate limited income when you can gain even more.
Unfortunately, one of the obstacles that millennials face during these times is the constant increase in living expenses. Everything is becoming more expensive and the two most common and expensive bills that millennials worldwide pay regularly are rent and transportation bills. Cutting down on such bills can be very difficult at first, but it can make a quite noticeable difference in the financial status of a millennial down the road. Cutting bills also include cutting any unnecessary or extra spending. For example, instead of eating out, a person can meal prep in advance.
Find an Approach to Tackle Student Loans
While this can be considered a constant bill that millennials who have received a higher education have to deal with, it deserves a section all on its own. To gain financial stability as soon as possible, you need to pay off all the loans that you have accumulated over the years. Student loans are often thought of as impossible to pay off, but if you find the right approach and consistently keep up with payments then you can gain financial stability and success sooner rather than later.
Look for Smart Deals
This may seem like a simple thing to do, but it requires a bit of effort on the millennial’s part. Not all deals that you find are necessarily good ones, even if at first glance they seem too good to be true. This is because they probably are. You can follow different millennials’ journeys in finding the best deals online so that you familiarize yourself with how to spot a good deal from a bad one. Kyle Burbank, a millennial writer from Moneyat30, states that you shouldn’t rush into traveling whenever there seems to be a good deal because more often than not, you are costing yourself even more money. For example, if a flight is cheaper on weekdays than weekends, you might be tempted to book flights then. However, you need to take into consideration the fact that you are going to miss work, and thus not only will you be paying the cost of the flight, but you are also going to miss a paycheck because of your travel plan. With that in mind, you need to figure out the total amount of money you are spending or losing when you think that you are going for a good deal.
Invest in the Future
Most millennials forget that many job positions come with benefits such as retirement funds. Although you are still young by many people’s standards, it is never too early to safeguard your future by investing in a retirement plan or fund. It may seem very inconsequential now; however, you will be grateful you started investing in such a plan when you want to retire or are unable to continue working as often.
Another way to invest in your future is with your career. You might consider combining your financial future with your career. People with finance qualifications are always in demand and even though many legacy jobs may disappear with increasing technological advancement, there is little long-term risk of this for the finance industry. There are many streams of finance so you might consider qualifications in financial planning, financial analysis or accounting.
Pay off High-Interest Loans First
As mentioned above, one of the things that many millennials have to deal with is student loans. Any person would think that paying off such a huge sum of money needs to be more of a priority than a smaller debt, for example, credit card debt. However, this is not the case at all and can be a deterrent for a millennial’s financial security. First, the high-interest loans, such as credit card debt or private loans need to be paid off so that they do not increase too much, and then you can tackle federal loans that have relatively lower interest rates.
Using these six tips, a millennial can be well on their way to establishing their financial security. It is important to note that most, if not all, of these tips, require planning and organization for a person to pull them off. Of course, there are going to be trials and errors when trying to follow these steps and tips; however, after getting used to them, it is going to be a natural process that saves millennial money and makes them much closer to financial freedom.