According to a study millennials constitute of the most overworked generation globally. Mostly in their 20s or 30s, they also make for the core work group at offices. Particularly in the UK, they are the ones who are yet to pay back their student loans, yet to reach the career high; and while coping with stagnant wages they are juggling to meet the ends every day!
As per the GfK Consumer Life Survey of 2017, money is the major cause of stress for at least 50 per cent of the millennials in the UK. As much as 4 in 10 Millennials are sceptical about their financial matters. However, the situation need not be so grim. The basic rules for personal finance are the same as they were before. One needs to budget, invest and save.
Let’s find out how to ease your financial stress before 40.
As you decide to use financial advice, you need to be honest and recognise the cause of wasteful spending. Before you splurge, ask a simple question: Do you really need to buy?
Most millennials spend on lifestyle products, dining out, alcohol, friends and vacations. It is alright to socialise and spend quality time with friends. But you need not always splurge. You must have a budget to check the spending.
One of the simple ways to curb emotional buying is to not buy online without a shopping list. It is effortless to buy using a credit card. When you are shopping online, it is easier to get swayed by the fabulous deal on that dress (or brand) you always wanted to buy. When you already have a list of payouts you must use your paycheck in a more refined way.
While a majority of millennials do not appear to be inclined to buy homes any sooner, but there is a segment of younger homeowners in the UK. With a host of debts including student loans, mortgage, auto loan, personal loan and credit bills, one is most likely to bring red flags on their credit report.
Buying a home is not a one time investment. Apart from the mortgage you also need to work on its maintenance. While a homeowner loan can help you raise low-cost instalment loan for home improvement, a debt is a debt and should not be raised until it is the last alternative. Always assess if home equity loans a good idea for your situation.
It is important to make definitive financial goals. You need to clearly outline financial obligations and set apart the part of income for each cause. If you want to repay your student loan within next five years, you must make a big prepayment before the beginning of each year. This will help you save on interest rate and close the deal sooner. Likewise, if you are planning to buy a home, you would need to build a good credit history. Apart from regular student loan payments, make sure you do not roll back your credit balances and also limit the credit use to permissible levels.
Last but not the least, invest for retirement too. It doesn’t matter how small the contribution is, but you must begin building a retirement fund at an early age. You can use customised financial advice for the same.