Yes, today we’re talking money! As millennials, we struggle to stay on top of our expenses, so money management seems to be a skill that continues to slip between our fingers.
I love being a millennial; I am proud of how we have adapted to the difficulties our generation has faced. We are innovative both in our personal and professional lives; we know how to think outside the box, and we certainly know how to experience life.
Living through two recessions on salaries that went down instead of up, carrying our student debt like a flag, has taught us to be as creative with money as in all other aspects of our life. Most 20somethings and 30somethings are now exploring ways to save more, trying to ensure a steady income, which allows them to settle down and have a family.
This means they are trying to find the best money management strategies to keep their finances in top shape. Surprisingly, the basics of money management are simple and easy to embrace. Moreover, we’re already familiar with all these things, as you will see.
Set up a goal
As millennials we know plenty about setting goals, measuring them and making them achievable. Applying those skills to saving is as straight forward. For example, you decide to set up an emergency fund. For this, you need to analyze how much are you spending and where can you cut down.
Let’s say you look at your monthly expenses over a few months’ period, and add them up. Multiply the figure by two and you have a goal when it comes to establishing an emergency fund. The next step is learning where can you cut down. You might realize you don’t need to leave the light on in the hallway when you are not home, so you might start saving money on electricity.
Or you decide you can swipe the daily latte with something healthier and cheaper, so you’re going to save money from this area. Checking your credit cards can give you more options when it comes to saving. Regular budget analysis can offer you insights on the areas where you can cut down the expenses, so you should be doing this analysis twice a year.
Take it as a challenge
As millennials we enjoy the experience of life as we live it, we enjoy challenges and new things. Money management doesn’t have to be a boring task, it can be fun and easy. Use your tech-skills and spend time researching investment options, use your social media skills and learn what is available through blogs and podcasts.
Learn about ETF’s (exchange traded funds), discover the attraction of hedge funds, and brokerage accounts. Explore your options using robot-advisors rather than expensive financial advisors, which can help identify your risk tolerance and style of investing. Moreover, you can do it all from a smartphone.
Automatize your payments
Millennials are good with technologies so take advantage of this and automatize your payments. Put all the bills and purchases on a rewards credit card. This way, you will be paid off in full at the end of the month. Because you will never lose a payment, your credit score will increase, which helps you save on the long run.
Millennials do not like to waste time, and something that is very attractive to us is one-click money management. There are some seriously good financial apps that guide, encourage and do the work for you, once you set them up. Leaving us with time to get on with the now of living – something else we are rather good at.
Featured photo credit: Alejandro Escamilla via hd.unsplash.com