Millennials follow a different path than generations before them, in more ways than one. This group is reaching milestones later in life, such as getting married and starting families, and focusing on life experiences more. We’ve been given all the job advice in the world growing up; the thought that all you need to do is work hard to make it big. However, someone along the way forgot to give more tips on money, especially given the difficulty of finding a job, especially in their field of study, for many millennials.
Although unemployment rates have been decreasing in recent years, millennials still make up roughly 40% of the unemployed in the United States, according to this Newsweek article. This fact can make it difficult for this generation to get ahead, but the good news is there are ways to leverage your finances even if you feel you are working a dead-end job.
Here are four money tips for millennials that I’ve used to help my own finances:
Make saving a social thing.
I don’t know about you, but I can think of at least five friends off the top of my head who have yet to get that raise at work. While we all love hanging out together, sometimes that involves extra spending that we really should not be doing. But, a way to spend just as much time together without emptying your bank account is to take turns hosting a girls’ night in. Buying some cheap wine and snacks accompanied by some movies and laughter is a great alternative for a night on the town, which can be $81 per night on average.
Also, the crew can ban together to do money-free weekends together. Even if you are not physically hanging out, you can still help to keep one another accountable. Plus, it’s great to have an excuse to bond with friends, especially over common goals.
Create other streams of income.
If you recognize that you are in a dead-end job, hopefully you are taking steps to get out in order to improve your financial situation. If you are having a difficult time finding a new job (another post for another day), another option would be to create some other sources of revenue as you continue the search.
Seasonal jobs are a great option for millennials as they are often a bit more flexible, but you can also offer to use some skills or talents you currently have to gain some extra income. House cleaning, babysitting and the like are all great ways to make cash fast, but you can also consider freelancing, especially if you want to land that dream job.
Get techy with it.
Investing seems so unattainable and intimidating before you actually start doing it, not to mention it can also be risky. But, it is a great way to grow your wealth. There are so many online tools you can use now to improve your financial portfolio without the intimidation. These resources cost very little to get started and are great for millennials. The best part is many of them allow you to create your own minimum investment amount, giving you more control over than ever.
Be smart with your options.
In desperate times, you may be tempted to apply for a payday loan or sign up for another credit card to pay off other expenses; however, by doing so, you are only creating more debt for yourself. These quick options may be easy to get, but they dig your hold even deeper. Don’t get caught up in these fast solutions to solve all your problems; instead develop a strategic and specific plan that will get you out of debt and get you ahead. This plan may include automating a monthly savings amount, consolidating current debt, starting a retirement fund, and cutting back on leisurely spending.
This is another reason why having an emergency savings fund is so important; it will keep you away from wanting to (or needing to) resort to these choices. Avoid accumulating credit card debt and instead work on building your assets and net worth.
Millennials definitely have had to face many challenges economically that may not have been expected or predicted by previous generations. By spending some time being careful about your finances, though, you can slowly but surely build a reliable and steady financial future for yourself.
These are just a few ways I’ve focused on improving my finances. What have you done that works for you?