A Millennial Guide to Personal Finance
Your twenties are some of the most challenging years, and that includes understanding your financial future. The decisions you make now will ultimately impact your whole life. Being able to sustain yourself and have confidence in your future requires taking steps towards securing your finances in the here and now.
The road to financial independence begins with developing healthy habits. Millennials can take charge of their money with just a few simple steps.
Do You Know Your Goals?
Knowing exactly why you’re tackling your finances is key to your success. Setting both short-term and long-term goals presents a clear picture of how you envision your future. A short-term goal could be setting up your emergency fund — which helps protect you should any unexpected costs occur.
Your long-term goals would fall along the lines of milestones like a down payment on a house, or your retirement. Having your goals clearly laid out will help you make concrete plans as well as see them through.
There's an App for That
Your phone already holds so much of your information, so why not include your finances? Budgeting apps are one of the easiest ways to take an overwhelming situation and make it simple. The best apps offer a convenient and reliable tool for young professionals in any field.
You can track your bills, any debt payments you might have, and learn to categorize your spending. These tools will help you decide if you need to make changes and even provide several alert functions to let you know when you’re heading off-track.
If You Need A Helping Hand…
If you’re finding yourself with irregular cash shortages or you’re wondering how to deal with surprise expenses, there are alternative routes that might work in your favour. Seeking out a payday loan is a possible solution if you need one-time short-term relief, and is an alternative to traditional lending options — known to provide faster, more efficient relief. If you find the right lender, they should be able to eliminate any red tape; often they only require basic information such as employment history and your banking details.
Avoid Impulse Shopping
Shopping smarter is an art that is easy to perfect. All it takes is recognizing where you’re spending more carelessly and finding the cost-saving alternative. Do you tend to buy a coffee on your way to work or school? Making your own is one of the simplest ways to save a few dollars, which you can then put towards budding investments or your emergency fund.
Ordering food or eating out with friends is another way to watch your money disappear. There are a number of easy, affordable meals geared towards Millennials. Do you spend your money on name-brand clothing? Try shopping at second-hand stores. The possibilities for savings are endless.
If you have your sights set on the next big milestone like starting a retirement savings plan or saving for a down payment, hopefully these tips will start you down the path to future financial success.
ABOUT THE AUTHOR
Randall Key, saving the world, one blog at a time.