Marian Kristine Bigcas
The problem always roots to how millennials spend their money. They should learn more on how to take control of their finances, empowering themselves with knowledge.
In 2017, a huge percentage of the working class is already composed by the millennials from various corporate fields. They are the individuals born between the years of 1981 and 1997. Albeit young in age, they never go behind work efficiency, skill, and personal capacity. In fact, many millennials are now sitting in higher positions due to their effort and determination. However, it can be seen that most of this generation suffer one common problem — money.
While these individuals are seen to have a huge potential of having a better long-term financial plan, these ideas are still hampered with their ability to save their earnings. Majority of this population do not or has little savings than what they could have had. Managing one’s finances is not a walk in the park. Nonetheless, these five contributing factors are the top reasons why most millennials find it hard to save-up.
Lifestyle Expenses
One’s way of living has a big impact on how they manage their earnings. Most individuals aim to live their “dream lifestyle” at the expense of spending more for rent, clothes, and more. They live beyond their means which often results in going over their initial budget. It is so easy to draw out cash when comfort and luxury are at stake. This generation often forgets to compromise indulgence over expense.
Debts and Loans
Once someone graduates from college, it is not always rainbows and butterflies. They are faced with the harsh reality of paying for incurred student loans and other debts. This includes the debts from credit cards. These days, it is easy for someone in the working class to get their own card. However, this can also be a fall-trap for many because it becomes easier to release an amount that they do not actually have in their bank accounts. Debts and loans should be avoided by anyone at all cost.
Financial security is the best goal anyone could and should have. For this generation, it’s never too late to start saving today.
Unexpected Expenditures
Life itself is unpredictable. When life’s riptides hit, anyone can easily drown to it. Given that these individuals have little to no savings, it becomes harder for them to cope when unexpected expenses come in the picture. They don’t have emergency funds to run to which may lead them to resort to loans and other financial means that would add debt on their shoulder.
Travel Goals
Recent surveys show that majority of millennials spend more money on their travel plans rather than their savings for the future. It has become a common mentality for this generation to work hard and long until they could travel again. While this is all fun and enjoyable, it can be harmful in the long run. This would mean that it would take them longer to save enough until they can leave the workforce.
Entertainment
Lastly, millennials spend a huge chunk of their budget on entertainment. These individuals pay for music streaming benefits, movies in theaters and sites, and other modes of amusement. Occasional entertainment is enjoyable but allocating a big amount of money for it is not an ideal practice. This generation should learn more how to find other ways of enjoyment that will not leave them with an empty pocket.
Overall, the problem always roots to how millennials spend their money. They should learn more on how to take control of their finances, empowering themselves with knowledge. Financial security is the best goal anyone could and should have. For this generation, it’s never too late to start saving today.
