Research has shown the Millennial generation to be the most ethnically and racially diverse in U.S history. Millennials are so named because they were born near, or came of age during, the 21st century dawn – the new millennium.
Let’s face it, it’s not so easy to be a millennial. Housing now costs more, so does housing and other basic needs. On the contrary, wages have increased very negligibly in relation to living expenses. But it’s not all doom and gloom for millennials. What is important for millennials to realize is that the world has changed and is fast evolving. They need to adopt new and different perspectives when it comes to their personal finance.
Below are 10 financial tips that will go a long way to help millennials start out on the right foot.
1. Many millennials still don’t know what to do. Well, that’s okay! Whiles some will jump right into college after high school, it will be beneficial if you took some time to know yourself better. You should discover what you’re passionate about and pursue a career that is in line with your passion. Many young people come out of college only to realize they pursued courses that they will never find happiness in working. Most at times, they have to go back to school for a different degree.
2. Don’t be deluded. The traditional system of getting a degree, then a job, work hard, get promoted and retire comfortably at 65, doesn’t work anymore. In fact your job can only get you far. It’s fine to have multiple jobs and even switch fields during your working career. It’s also OK to focus on your family whiles taking a break from work.
3. Always say yes to free money. This includes employer’s RRSP/401(k) math, bank’s new account bonus and cash credit cards.
4. Be always willing to acquire knowledge. You can learn from anyone, from your manager to the receptionist. Job title doesn’t necessarily have direct correlation with knowledge possession. You could learn valuable knowledge from the receptionist that you would never learn from your manager others who are even higher in rank. Be humble in your dealings with people as you may cross paths some time again.
5. You should learn to ask for help and to say no. Whatever help you need, from understanding your bank statement to budgeting, feel free to ask for help. As the saying goes, “you’re a fool once when you ask, but you remain a fool forever when you don’t ask”. You don’t need to fall for every invite to go to the mall to spend lots of money on unnecessary stuff. It’s OK to say no and use your time and money in a better way.
6. Pay yourself before anyone. Set aside a certain percentage of your income for investment. Savings are very important when you want to be financially independent. Save and invest. Give this priority.
7. There are several ways of making and growing money. Learn about the different investment areas such as real estate, index investing, dividend investing, business and the many others. Choose the ones that suit you and go with that.
8. Don’t compare yourself with other people. That’s why it’s called “personal finance”. It is personal. Find your own balance of spending and saving and work with it.
9. Be content with what you have. If you’re not happy with the little you have now, more stuff, more money in your bank account, or a higher position at work won’t make you happier. Enjoy the little things you have.
10. Make the mistakes now. It’s totally fine to make all the mistakes whiles you’re young. Make sure however to learn from every single mistake. Explore more, and take calculated risks.
Have more tips? Add them to the comments below.