The millennial generation is redefining most of the norms that a lot of people have held true for the longest of times. The fact of the matter is that when it comes to financial security, the millennial generation can greatly benefit from taking a leaf out of the older generation’s playbook. Here in this article, we have explored some essential tips to financial security that would be beneficial to all ages, but especially beneficial to the younger generation.
Whoever said that money can be saved after the thirties was clearly born with a silver spoon. It is of paramount importance to inculcate the habit of saving money. Start by giving yourself a small goal that you wish to achieve at the end of each month. Build on this goal to reach the “Lay off goal”. The layoff goal is the amount of money that is put away every month to build enough for the normal functioning of the individual for a period of 3 to 6 months, if he or she was suddenly laid off as a result of termination, downsizing or due to any other reason. You can’t turn around one day and be like you know what I am going to save money from this day; you have to start young and stay true to saving every month. Think of it like this, saving today can greatly increase your financial stability in the future and better yet you will have enough money to say invest in a venture that you are excited about without having to take a loan.
Spending needs to be curbed a lot. People end up using their credit cards a lot for almost everything and soon enough the bank statements come in and you are wondering why you spent so much. There is no point living like a king for the first two weeks after your salary kicks in and then live like a peasant for the rest of the month because you can’t afford basic amenities. First of all, we suggest that you take the time to either draw up a budget or turn to a budgeting app that helps manage your finances. Extravagant dinners, sudden vacations and things that fall under that category need to be checked. We are not saying don’t spend, but always make sure to fall within a boundary that you set for yourself.