To say that most millennials have a troubled history when it comes to finances would be a massive understatement.
With many entering the job marketing during the Great Recession or simply not having the firmest grasp on the concept of financial literacy, everything from employability to earning potential has been negatively impacted in their personal lives as a result.
This unfortunately has led to a slew of articles and stereotypes that young people represent a sort of “lost generation” when it comes to cash.
The good news? It’s more than possible for millennials to get themselves out of the hole, so to speak. While conventional wisdom tells us that there’s little hope for those who don’t “have it together” by the time that they’re 30, there’s still no harm in at least trying to set one’s financial future straight.
In this guide, we’ll break down some pointers that the millennial crowd can take to heart in order to get themselves on track in terms of their bank accounts. Regardless of where you might currently be at, these tips can serve as big-picture goals for the future.
Reevaluate Your Career
Perhaps the most prudent advice for young people concerned about cash-flow is to hit the reset button your career. Especially if you’ve been stuck at the same company for some time, the fact remains that you may be undervaluing yourself as your wages haven’t risen at a reasonable rate based on where you started.
That doesn’t mean you should up and quit your job, but rather begin considering new options. Remember: it’s not 2008 anymore. Given the relatively strong economy, there is a greater sense of competition when it comes to salaries and benefits; meanwhile, companies are much more eager to hire than before.
On a related note, you may also want to explore the possibility of starting your own business or at the very least explore a side gig. Resources such as LegalZoom can help give you an idea of what you need to turn your entrepreneurial aspirations into reality.
Sort Out Your Healthcare Situation
Healthcare costs are sky-high for much of the country, although millennials do have the upside of relatively low premiums due to their age. This serves as yet another reason to explore new employment options, though, as businesses use comprehensive plans as a means of competing for talent.
Beyond a new employer, consider some additional ways you can save on the essential care that you need. For example, the benefits of a health savings account such as a lower tax burden and tax-free withdrawals are notable for anyone who knows that they’re going to be paying for doctors visits and long-term medication throughout the year.
Get Your Savings and Investments Squared Away
Many millenials have already picked up some penny-pinching tendencies, which is actually good news.
However, it’s not a smart move to be frugal to the point where you refuse to save. Whether it’s a certain percentage or a dollar amount, putting something away month-after-month is a non-negotiable.
You may not be thinking about retirement now, but you’ll thank yourself down the road by getting started early. To help encourage your saving habits, you might want to look into choosing an IRA to maximize your savings rather than let them sit in a low-interest account.
Start Looking Beyond Your Rent
If you’re totally freaked out by the idea of buying a home, you’re not alone.
That said, it’s worthwhile to at least start exploring the market as part of your long-term goals.
If you’ve been renting for ten or more years, think about how much money you’ve spent that you’ll never see again. This reality stings, but also signals why having equity is so important. Although regulations on loans and mortgages are tighter than they used to be, married millennials might be able to qualify for more than they think if they do some searching.
But as a side note, millennial regret over home-buying is well-documented. As is the case with anything, strive not to spend beyond your means and keep yourself grounded when exploring your options.
Invest in Yourself
This might sound a bit like fluff, but don’t also ignore the need to take care of yourself mentally and emotionally as well as professionally. Taking to steps toward self-help (think: eating well, exercising regularly, reading or creative pursuits) will ultimately put you in the right place to make significant changes in your life like the ones noted above.
Although it may never truly be “too late” to get your finances in order and start saving, do so sooner rather than later: this is especially true for millennials who’ve been in a less-than-ideal situation for most of their lives. Sticking to the tips above, you can look toward your financial future with peace of mind.
