09 May Money Tips for Millennials
Many millennials are at the age where they’re graduating college, getting first or second jobs, looking into buying homes, and really starting to learn how to manage their finances on their own. Even with all of the information available to them, with friends, family, and unlimited online resources, many millennials still aren’t sure where to start. Here are a few tips to help you start out on the right financial foot.
1. Start saving immediately.
Yes, you have student loans to pay off. But yes, you can still afford to save. Not only to an emergency fund savings account, but also to a retirement fund. If your company offers a 401K, take it, and contribute enough to receive an employer match. If not, then open an IRA and start contributing about 10% of your yearly income. Pay your debts, but pay yourself first.
2. Set a budget.
Really take some time to sit down and determine how much your bills cost each month, how much you’re going to put towards savings, and how much you have to spend. You don’t want to overspend and not put anything towards savings, but you also don’t want to restrict your spending so much that you’re stressing yourself out if you ever have to spend a dime. Keep a happy medium and give yourself an allowance to spend on whatever you want each month, but also learn how to say no, you can’t go out every once in awhile.
3. Save your money where you can’t see it.
We preach about the importance of saving money, but one issue that millennials tend to have is continuing to pull money out of their savings to cover times when they’ve overspent. This is a very bad habit and it’s not helping you to build your savings. Instead of keeping your savings in an account with easy access to withdraw, try another option, like a Certificate of Deposit or an investment account.
4. Ask for help if you need it.
If you’re really struggling to keep your head above water and you can’t seem to break your spending habits, then don’t be afraid to ask for help. The sooner you can become more financially stable, the better. Reach out to family or friends, or speak to a financial advisor. You’re never too young to start off on the right financial foot.
The idea of finance is not “boring” and it’s not something that you can just “worry about later.” Your finances are something that you need to worry about and learn how to control now.