Financial stress is a common thread through all generations; however, millennials are feeling extra pressure due to skyrocketing student loans, a competitive job market, and high cost of living. Despite this set of challenges, there are some ways to whip your finances into shape. Let’s take a look at some of the methods this generation can use to relieve financial anxiety.
Rather than seeing a budget as rigid and limiting, think of it as GPS for your money. If you have a destination (like saving for a special occasion), a budget will map out what you need to get you there.
Not sure where to start? Search online for budgeting templates, and either use one you find or leverage it as inspiration to create your own with software like Microsoft Excel. It doesn’t have to be fancy, but it does need to be honest and realistic. Looking at the hard numbers might be uncomfortable, but remember that it’s part of building the road to your financial destination.
As any good GPS will tell you, sometimes you have to recalibrate. Your budget is a living thing that evolves with your income and priorities. So it’s good to revisit it regularly, e.g. quarterly, after compensation increases, etc., and adjust allocations as needed. And when you’re ready to level up, check out tools like Mint. It’s free and connects directly to your accounts to display your spending habits in easy-to-understand charts, allowing you to see patterns and make informed financial choices.
In comparison to older demographics, millennials annually spend $2,300 more on things like groceries, gas, restaurants, coffee, and cell phones. When you have a smaller budget to work with, it’s vital to focus on areas that matter most — think of these as must-haves. If having a nice cell phone or dining out with friends is important, prioritize funds to those areas and scale back on nice to haves like taking cabs, cable TV, or concert tickets, etc.
The tiny hinge swings the big door. Translation: Small things accumulate over time to become impactful. There are countless ways to achieve this, such as:
Becoming a stress-free, financial ninja means protecting your assets. There are many ways to do this, including using credit score calculators to see your overall rating and, in some cases, working to repair your credit to get back in good standing.
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