Millenials have always been the generation to innovate and demand change in the world around us. For many of us millennials, it can be hard to understand the complex world of finance and how it can affect us for the rest of our lives. Since most of us are starting our careers and starting to settle down, our finances may be on the backburner.
Millenials have far less income and financial power than the generations before them, but these money tricks can help ensure that you have a clear financial path in the future.
Not Having a Budget
Us millennials love paying for certain experiences, products, and services. Have you ever told yourself you would stop eating out only to find yourself at the food court near your work the next day? Sticking to a budget is tough, but it can be even harder if you do not sit down and organize your income and expenses.
No Emergency Fund
We never know what the future can hold. A car repair, an emergency hospital visit, or a sick pet can cost you money that you don’t have. One step you should take to help prevent a financial disaster from occurring is to have an emergency fund.
An emergency fund is an account that holds about 4-6 months of living expenses in case of a job loss or emergency. If you have no other form of income besides your main job, you may one day have to rely on this fund in the case of an emergency.
Not Saving for Retirement
Many millennials keep asking why they need to save for retirement now when they’re young, healthy and employed. However, the earlier you start saving, the more your future self will thank you. Even if you can only contribute $40 per month to a retirement account, it is still better than nothing.
Over the course of your lifetime, you will see that money grow into a substantial amount that you can use to live off when you retire. Life tends to fly by so its best to always be prepared for the future. Be sure to ask your employer if they have a retirement account that matches employee contributions.
All in all, getting your financial life together as a millennial can be tough. Although we millennials tend to only think of the positive outcomes in life, it’s always great to be prepared for the future. If you haven’t already, take some time to utilize the tips we’ve given you to help you thrive.