Millennials are smart, creative, and analytical. They are also computer savvy. All generations are concerned about finances. However, millennials are more concerned and have more anxiety about finances than other generations due to higher living costs and inflation.
Millennials are more concerned about the economy, which affects how they spend their money. Millennials seek quality, worth, performance, and substance. They prefer quality to quantity and research purchases thoroughly before buying.
Millennials must plan for the expected and have a contingency plan. They must identify possible scenarios that could occur and develop solutions on how to deal with them.
More than 80% of millennials will at some point in their lives have sole responsibility for their finances. Every millennial can and should know how to manage their own finances. Here are 6 effective ways for millennials to manage and secure their finances.
BUDGET
- Create a budget or spending plan to control spending.
- Include monthly expenses and debt plus your monthly income.
SAVE
- Create an emergency fund to cover monthly expenses for 9-12 months.
PAY OFF DEBT
- Pay down debt and get current on late accounts.
- Pay more than the minimum monthly payment.
- Pay off student loans.
PLAN FOR RETIREMENT
- Max out your tax advantaged retirement plans.
- Consider open an additional retirement plan such as an IRA.
PROTECT YOUR IDENTITY
- Take accountability and responsibility for your transactions.
- Monitor your credit quarterly. Monitor your bank account at least weekly.
- Avoid using unknown websites.
- Lock your credit reports and set a security freeze.