Hey Millennials (Young/ graduate/out of college/ 3rd year of work)
How many times have you stopped to think about your financial future? Once? Everyday? Never? whether you are fresh out of school or you’ve been working for a few years now its important to stop and take stuck of your financial situation because your actions can affect your future financial stability.
So now that you know you need to draft a game plan for your financial future and to get on the right track we’ve listed some common financial mistakes and their solution, so make sure you read through thoroughly then screen grab this page because this is a very important information that would help you make the right financial choices.
1. Not Prioritizing An Emergency Fund
When you talk about savings a lot of young people feel like it is ludicrous, they are young what do they need savings for but the truth is its important. First for your health and for non-health emergency.
- Solution: Its important to have at least 3-6 months of living expenses in a special savings account. Go to the bank and get a standing order of a particular amount which would be taken from your monthly pay check and transferred to the special sabings account you should have no Atm to.
2. Linking Your Credit Cards To App’s
If you have app’s that you constantly use like Uber or any quick service which you use to order for quick services then you need to pause. Study has shown that these app’s help t derail your spending habits
- Solution: Before you purchase anything using this app’s you need to ask yourself this question; Would I be happy to hand over the cost of this item in cash? If you are unsure then sleep on it.
3. Forgoing A Budget
There are about 1/3 people that have budgets the other 2/3rds don’t even know what it’s about or they turn a blind eye to the knowledge which could affect your finances seriously.
- Solution: Simple map out a budget step by step on a work sheet and print it out. Fill in the gaps with budgets plans this would give you a clear start.
4. Over-Spending On Travel
As a millennial you dreamed of the travelling world and you’ve been focused on it by travelling 3 times a year. One thing you should note is that travelling leaves a drain on your finances.
- Solution: Build a travel plan and segregate it into 3; Short term goals (1 yr +), medium term (5 yr) and Long term goals (5yrs +) when you do this list out and factor in all the thing you want achieve within this time frame. This would put your travel expenses into perspective and make sure you spend wisely.
5. Waiting To Invest
Women are generally great savers but sometimes we play it safe. In today’s economy saving is never enough because of the upsy turvy economic situation our country is in.
- Solution: Don’t wait till its to late to put out money for your retirement plan, its not too early to seek a financial planner. Start with 1% or More of your monthly pay and increase it as the months go buy. Its never to early to save for your retirement.
This are some of the checklist you need to avoid future financial melt down.
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