Millennials are starting to become a key group of people in the modern world. Political parties are trying to win elections by appealing to the younger generation. Most of ‘pop culture’ is centered around millennials and the millennial way of life. It’s almost as though they’re the most dominant group of people around right now.
But, what is a millennial? A lot of you have possibly heard this term and not really known who it refers to. There are differing opinions on this, but the most agreed upon view is that millennials are people that start to enter their adult life during the noughties. Depending on who you ask, anyone from the age of 18 to 35 is deemed a millennial these days – with some even considering those born in the 1980’s to qualify as well.
So, some of you reading this might well be millennials without even knowing it. The question is, why is this group so widely talked about? As it happens, if you’re a millennial, then you’re going through adulthood in one of the most exciting and unique eras ever. We’re in a technological boom now, with so many new things coming to development every day. As such, the world in which we know it has changed forever.
Now, you’re probably thinking; what does any of this have to do with finances? Well, millennials are in a unique financial position. Growing up and getting your first job in this day and age poses many financial benefits, along with some complications. A lot of millennials are in the same boat and have the same money problems. Likewise, there are loads of positive financial choices millennials can make now, which will impact them in later life.
Bearing all that in mind, this article is going to guide any millennials out there through their financial life. You will find the best financial tips for people in this age group. Following them will help you gain financial stability, and live your life in full control of your money. Read all of the tips below:
Plan For Your Retirement
If you take a look at the statistics over the years, you’ll find the retirement age is constantly going up. People are being made to work longer and longer, which poses a problem for millennials. Nobody wants to be working deep into their 60’s, but that’s the harsh reality we have to deal with right now.
One of the best pieces of financial advice for all millennials is to plan for your retirement right now. Even if you’re 18, you can still think about retirement. Do something simple like putting money away in a savings account, never to be touched until you retire. Or, start a 401k retirement plan and save more efficiently. If you’re an older millennial with a permanent job, ensure you have a good retirement plan from your employer. Often, companies incorporate something called a ‘company match’ where they match what you put into your retirement fund. It’s still suggested you have a private pension alongside this to further your retirement savings.
There are two reasons you need to plan for your retirement from an early age. The first is because it gives you more time to save money, leaving you with a bigger pot at the end of the rainbow. The second is that it may help you retire early. Just because the retirement age is at a certain point, doesn’t mean you can’t retire early. It’s just that people can’t afford to most of the time, because they haven’t planned. Millennials, start planning now, and have a much healthier financial future.
Learn How To Deal With Debt
One thing you can almost certainly predict is that the majority of millennials will end up in debt. The main reason for this is education. This group of people are some of the first people to go to college and university in their families. They’re also unlucky enough to grow up during a time where tuition fees are pretty extortionate across the country. The government is keen to step in and help out, giving you a student loan. As with all loans, this one will land you in debt, and a pretty steep amount too. It can take many years to pay it off, meaning you have to learn how to deal with debt effectively.
Plus, that’s without taking into account other forms of debt you might amass. Mortgage loans lead to a lot of debt – you can literally spend decades of your life trying to pay off all your debt. Arguably the best way to handle debt is to look for a debt consolidation loan. This is a loan that will bring all of your individual debts together, under the same roof. Make sure you read some debt consolidation tips before you dive into this, as it might not be the right choice for everyone. Other ideas include learning how to budget properly so you can live a normal life while still being in debt. What you don’t want is to end up in a situation where you can’t spend any money because you’re in so much debt.
Hopefully, the simple fact that you’re now aware of this will make you stand up to it better. Set things in place now to ensure you handle the debt before it comes.
Invest In Something
The problem most millennials have is that they’re at an age where they’re finally earning money. No longer are you dependent on your parents, you earn money, and it’s yours to do as you please. Unfortunately, most people this age will spend their money on material possessions. I’m not saying you can never do this, but have some restraint.
Instead, spend your money on something that will turn it into more money; an investment. Investing in something is one of the best things a millennial can do, and there are so many options at your disposal. As of right now, all the talk is about cryptocurrency. This is one of the many things millennials are blessed with, compared to the older generation. It’s a fairly new concept, one that’s only been around for a decade or so. Currently, we’re living in what many predict is the beginning of the cryptocurrency boom. Bitcoin has already increased in value by astronomical amounts. There are other cryptocurrencies that are also appreciating dramatically; it’s the go-to investment right now. Read up on what’s out there right now, and think about investing in it. Now is the time to get in, and you could earn a lot of money before the bubble bursts.
But, you also have other conventional investment ideas too. Stocks and shares are still so worthwhile, and your attention should – once again – be in the technology sector. Tech companies are popping up everywhere, with new technology taking the world by storm every year. 3D printing was a big thing a year ago, and continues to develop, augmented/virtual reality seems to be the next big thing – get involved with it. Investments help you grow your wealth and save money at the same time. By tying your fortunes up in investments, you can’t spend it on useless things, helping you control your spending habits.
Find A Job You Enjoy Doing
The best way to be financially stable is to earn a lot of money. So, this all starts with finding a job. As a millennial, no doubt your parents have bored you with their stories of how they had to work dead-end jobs for many hours a week, just to make ends meet. It’s normally a story they tell you if you ever question them on anything or show the slightest sign of being ungrateful. As a kid, you probably rolled your eyes whenever they went on about this. However, as an adult, you should now realize that they suffered through that, so you don’t have to.
These days, there are so many different jobs out there for young people. No longer are you confined to a small selection, or forced to look for jobs in one place. Thanks to modern technology, millennials are working from home and working for companies in different states or different countries. There are no restrictions on finding work anymore, which means you can go out and find a job you enjoy doing.
This is very important, as a good job will help you stay motivated and want to succeed. If you’re good at your job, and enjoy doing it, then you can progress further in your career. The motivation is there to gain promotions or get raises, and move on up the ladder. Your path to financial success and stability starts with a job, so make it one you enjoy.
In conclusion, there are a few main things all millennials need to think about regarding their finances. First, find yourself a good job that you’re happy to do. Then, it’s a case of planning for the future – by saving money for retirement and also learning how to deal with debt. Along with this, use your money wisely by investing it and growing your wealth.