Millennials or popularly known as ‘Gen-Y’ are those with birth years ranging from the early 1980s to the early 1990s. They are the one who grew up in the age of technology with a fast moving lifestyle, working hard to earn money to have a secure financial future.
However, due to increased competition across all the sectors and no money management tips, it becomes pretty difficult to manage finances during hard situation. Here are 5 financial tips; a millennial should definitely keep in mind to have a secure future, from an early age:
Plan your monthly Budget
The first and foremost tip which every millennial must keep in mind is to plan a monthly budget so that you can save accordingly. You earn good but left with nothing at the month-end because of your spending habits. So, it’s important to prepare a monthly budget depending on your income and stick to it whatever is the situation. Spending in accord with the budget will increase your balance with time.
Increase your savings
A golden rule for every young smart professional is to save every month which will also increase your finances. Start with small and make it big with every passing month. Allocating budget in mutual funds, public provident fund, securities, bonds, and other tax saving investment options will help you in serving during the time of financial crisis as well as help in achieving monetary goals.
Formulate emergency funds
It a common habit among many millennials to spend blindly which also land them in debt or financial crisis. At such time, emergency funds come to your protection. It’s important to save some amount of money to save it in an emergency fund on monthly basis. This fund helps you during a loss of job, medical emergency etc. Furthermore, if you continue to save like this, then you will soon find yourself with more than just an emergency fund that can be used for any other purpose like travelling, buying a car etc.
Investment in P2P Lending, a new asset class
As today’s millennials are more tech-savvy, so why not start investing in online lending platforms, popularly known as P2P Lending. Professionals think that only banks and businessman can become lenders, but in the case of online lending, it is not so. However, investing on such platforms let them earn a good interest starting from 12% to 30%. P2P Lending also gives you the freedom to have a control over your complete profile right from choosing the kind of borrowers to the period of lending.
Smart and early planning for Retirement
These days with the fast moving pace of life, retirement comes soon for millennials, so it’s important to have smarter planning for retirement days as it’s never too early to start saving for your growing age. Start saving small amounts from the first day of your professional career. So, if you plan early, act accordingly and invest in right places, you’re already halfway to true financial independence where you can enjoy your retirement days happily.