Maria Marilyn
Millennials are special for many reasons. Apart from being today’s driving force in the job market all across the globe, this generation of young men and women are also defying traditions and embracing what is new, hip, and utilitarian. Be it in the field of parenting, career or finance — these millennials tend to embrace bolder choices.
How about we talk ‘money,’ shall we?
In one report published by iQuantifi and Middle Tennessee State University, 41% of the respondents who happened to be all-millennials vowed to increase their savings in the next 3-5 years. However, the problem is them are stuck with mountains of debt from college loans, car loans and the like.
So, the question is — how can they exactly fulfill that financial goal?
Here are some golden advice collected by GOBankingRates from the best finance advisers:
Change your mindset about financial planning
Convince yourself that it works. And it does. The author of best-selling book, ‘Rich Dad, Poor Dad,’ Robert Kiyosaki reiterates the importance of having a ‘Plan B.’ This contingency plan actually also helps in shifting the mindset about money. It can help make millennials feel a lot of less vulnerable and reduces the risk of getting exposed to financial setbacks.
Just like Billionaire Warren Buffet, Kiyosaki also believes in having multiple streams of income so start looking into other possible options like a side job, small business or safe investment (i.e. from banks) and more.
Challenge yourself and your friends to stretch your peso
This is like the ‘pilates’ of finances. You can do this with friends. Start developing habits that will allow you to save money without sacrificing the ‘fun.’ For instance, instead of going shopping every payday, why not do a clothes swap with a friend? Instead of having night-outs too often, organize a dinner at home instead. Learn to say ‘NO’ when tempted to splurge on something that you won’t use regularly or a lot.
Prioritize saving for emergencies
According to the same report mentioned in item 1, millennials focus on saving for vacation first rather than for emergencies. A staggering 68% of those who participated in the said study revealed that their primary goal is to save for leisure. This fundamentally shows how financial priorities can be badly misguided.
Ms. Whitney Johnson, another best-selling author and financial analyst, also emphasized about the importance of saving for rainy days. According to this expert, millennials should target saving at least 6-months’ worth of salary as an emergency fund before focusing on other goals.
You’ve got tech tools, right? Use them
Going for the traditional method of saving sometimes do not interest millennials. So, the key is to encourage them in using something they cannot live without — yes, technology. Millennials can also be excellent and smarter spenders using applications that can guide them on how to budget effectively. There are likewise tools where discount and promo coupons can be obtained. College students and fresh graduates who are still living on a smaller monthly budget can immensely benefit from these.
Money and time go hand-in-hand
Yes, money is a starting point. However, as millennials develop a greater understanding of how to save, invest, and spend smart, they will also get to grasp the significance of making financial decisions at the right time.
