Money Management For Millennials

A number of millennials struggle to manage money.

 

This can be blamed on many things, from student loan debt to inflated living costs. However, there are steps that millennials can take to overcome these hurdles and improve their personal finances.

If you’ve had a financial setback, this article can help.

 

Take An Online Course

 

If you’re seriously at a loss when it comes to managing your money, consider taking an online course.

 

You can take a course in numerous subjects that could help you to get better at managing your finances, including economics, accounting and capital markets. Sites like Udemy offer courses for free or for a very low cost. You’ll likely learn things you didn’t know, and knowledge is power!

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Consume Financial Content Regularly

 

The more content you consume based around finances and spending smart, the better you’ll likely be at managing your money.

 

We can control most of the content we consume by being vigilant online and our social media platforms. If you follow people on social media that make you want to spend to keep up, unfollow. Many people find themselves spending money they haven’t got to keep up with people that they don’t really like. Don’t fall into this trap! Reuse and recycle as much as you can instead.

 

Follow Instagram pages that give you great tips on finances, and watch YouTube videos. Just like taking an online course, you’ll learn so much more.

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Create A Monthly Budget

 

If you haven’t got a budget, how are you supposed to manage your money better? You must know your numbers!

 

Know how much you have coming in each month, and what your essential expenses are, like your bills. When you know this, you can allocate your money to different things, such as food, entertainment, and little luxuries. Of course if you’re going to manage your money properly, you should also allocate a decent amount to savings each week/month, keeping your luxury spending to a minimum. You can allow yourself a little luxury spending though, especially if you know it’ll stop you from having a huge spree at some point.

 

Find a Side Hustle

 

If you’re always swapping your time for money, then unfortunately, it’s unlikely you’ll become wealthy at any point.

 

Having a day job is completely valid and a must for most people, but see if there’s anything you can do to make income passively. Ideally, you’ll work as little as possible while making as much as possible. You start small, and simply keep trying things. Eventually, you should find you’re covering some bills each month, and as you continue you might even find that you’re making as much as, if not more than you would in a regular job.

 

Some people make helpful YouTube content and monetize their videos, some write Ebooks, some create courses online, and some rent out properties and other assets. There are lots of options, but it’s up to you to explore what’s best for you.

 

Get A Mentor

 

A mentor may be able to look at your situation objectively and help you to make changes to your lifestyle that will enable you to manage your money better.

 

Ideally, a mentor will be an organic relationship with somebody that you trust. It could be somebody you’re close to who you know is great at money management, or it could even be a colleague.

 

Track Absolutely Everything You Spend

 

As well as having a budget, you should track everything you spend.

 

Those little purchases add up, and only when you know where your money is going can you make changes. There are lots of ways you can track your spending, but there are apps that will do it for you. If you prefer, you can do it in a spreadsheet, or while you’re on the go on your smartphone. Doing it as you go is probably the easiest way, as you won’t forget and everything will be accounted for.

 

The great thing about tracking everything you spend is that you’ll know how much you have to spend at all times, and you won’t be tempted to overspend simply because you’re not looking at your bank balance.

 

Use Apps To Help You Budget And Save

 

We just mentioned apps, but they are worthy of having a section all their own.

 

There are numerous money management apps you can use, and they will help you to budget and save. They can notify you when you’re nearing your spending limit, show you pie charts of how you’ve spent your money that month, and even round up your purchases and put the rest into savings for you. Some apps are free, but others may cost you a certain amount per month/year. Although you may not want to pay for an app, they may pay for themselves eventually if they help you to budget and save effectively.

 

Speak To A Financial Professional

 

If you need more than a few tips to help you manage your finances, it might help you to speak to a professional company who can learn about your situation and advice you from there.

 

If you have debts that you want to pay off, for example, then you might want to learn more about DebtConsolidationUSA.com. There’s always a solution for you if you feel you’re having trouble with this kind of thing, just don’t leave it too late to speak to somebody.

 

Get Into The Habit of Saving

 

Getting into the habit of saving is one of the best favors you can do for yourself.

 

It can be tough to part with 10% of your earnings each month, so if you feel you might change your mind and choose to spend it instead, consider setting up a direct debit. This way, you won’t even have to think about the money leaving your account and you can just look at it as another bill. Before you know it, you’ll have a substantial amount in savings.

 

Live Within Your Means

 

Whatever your goals are when it comes to money, make sure you always live within your means. Spend less than you earn, and don’t be tempted to get into debt or use your overdraft for the sake of it. No purchase is worth getting into debt, unless it’s an emergency and you have absolutely no choice!

 

Save Up An Emergency Fund

 

Having an emergency fund behind you can stop you from getting into debt.

 

What would you do if your car broke down unexpectedly, or you had an issue with an appliance at home? What if you lost your job or had to take a pay cut? You just don’t know what the future holds, so saving up anywhere from 3-6 months of your living expenses can give you peace of mind and keep you going if something bad were to happen.

 

Set Goals- And Come Up With A Plan To Reach Them

 

By having some goals to work towards, you have more of an incentive to save money and take steps to get better with money. Figure out what your goals are and come up with a plan to reach them. Let’s say you want to save up 6 months of living expenses in 1 year.. How much would you have to put aside each week to make this happen? By breaking down your goals like this, you should find reaching them much easier.

 

Wait Before Purchasing An Item

 

We’ve all been online or in a store when we’ve felt the burning desire to purchase an item out of the blue.

 

If you can just stay mindful, avoid the urge and wait it out, you should find that a few days will pass and you’ll be glad you didn’t by it. If in a few weeks or a month you still find yourself thinking about the item, you can buy it knowing that it wouldn’t have lost its novelty. It’s always best to plan for purchases, though!

 

Always Look For Ways To Trim Your Expenses

 

Make sure you constantly look for ways to trim your expenses. Don’t just keep on paying your bills without looking for better deals, for example. If you have subscriptions you don’t use, cancel them. Make sure you plan to look at your budget at least once every 8 weeks to see what changes you can make.

 

Keep An Eye On Your Credit Score

 

Finally, keep an eye on your credit score. Many millennials have no idea what their credit score is. Your credit score can affect your interest rates, mortgage, and more. Make sure you keep it healthy by paying your bills on time, paying off your debts, and disputing any mistakes on your score. Don’t just ignore it and hope for the best!

 

Follow these tips to improve your finances.

 

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(amazon author page) amazon.com/author/kenboyd

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/