WorldExecutivesDigest.com | 5 Money Management Tips for Millennials Especially in These Times | They say that poor planning leads to poor performance, and this is especially true in the case of your finances. Staying on top of your personal finances is an essential piece to living a comfortable life and planning for a fruitful future. Even if you’re currently living paycheck to paycheck, there are a number of things you can do for yourself to ensure that you’re still able to make ends meet while managing your money well. The millennial generation is befuddled with heaps of debts no other generation has seen before. Here are some quick stats about the current millennial state to provide more eye-opening context:
- 1 in 5 millennials live below the poverty line
- Millennials have 300% more student debt than their parents
- Most millennials won’t be able to retire until the age of 75
To battle your odds against these harrowing statistics, start changing your lifestyle today so you can reap the rewards later. Using this guide, we’ll let you in on five of our favorite money management tips for struggling millennials.
Tip #1: Use a budgeting app
The modern app market is bountiful with comprehensive programs that can do just about anything—so why not suit up your smart device with a budgeting app that helps you keep your finance in order. There are a myriad of budgeting apps that give you a detailed look into your finances at the tip of your finger.
Not only can these apps provide sound spending and budgeting recommendations to ensure you’re always on track to meet your financial goals, but they can also give you a birds-eye view at where your money goes week-by-week, month-by-month, and year-by-year.
Tip #2: Take tax season seriously
Tax season is a great opportunity to get a nice refund check from the IRS after a full year of fulfilling your civic duties. This, however, is only possible if you make sure to do your taxes accurately and on time. There’s no denying the simple fact that filing your taxes can be quite the endeavor—with so much to read and numbers to calculate, it can be easy to feel overwhelmed by the entire process. Matters are only made worse when you realize that a single mistake could trigger a penalty, or even worse, an audit.
If you’re feeling uneasy about tax season, consider outsourcing the heavy lifting to a tax professional who can do everything for you. With years of tax-preparation experience and access to professional-grade programs like tax software hosting for Lacerte & ProSeries and QuickBooks, you can rest assured knowing that your taxes will be expertly handled and your refund will be optimized for the maximum amount of money back.
Tip #3: Invest in the stock market
As intimidating as investing may seem, it’s actually pretty easy to grasp as a beginner so long as you have the right apps in your arsenal. In addition to investing being an excellent way to amass passive income, it’s also a great way to position yourself up for success years down the road (if you play your cards right, of course). If you’re a novice to the investing scene, we recommend starting with small amounts of money rather than plunging in and investing every last cent in your bank account.
If you’re smart about your investing move, it can quickly become one of the fastest ways to build wealth. Do note that with all stock market investment, there is a certain risk that accompanies your efforts. There is just no predicting how the market will fluctuate. Be smart, and do your research before diving in.
Tip #4: Kick expensive habits to the curb
Whether it’s your expensive beachside gym membership or your online shopping sprees that occur every payday, there is bound to be some sort of expensive habit that you can afford to kick to the curb. If you want to get serious about developing and committing to a budget that works for you, the first step is ousting any superfluous money-suckers that zap your account.
Tip #5: Consolidate your debt
Consolidating your debt can be an especially useful money management move to take if you have multiple loans with various interest rates. This is a viable option if you’re repaying personal loans, credit card debt, student loans, and more. Turn all of those pesky bills into a single lump sum loan with a fixed interest rate.
Keep your heads up, Millennials! With these tips in mind, you’ll be able to find your financial freedom sooner than you ever imagined possible.