Learning from Millennials’ mistakes
15 Jul 2021
One way of learning is failure – or to make a mistake and learn from that mistake. Another option that will help us learn, is to watch and learn from others. Over the years, our older siblings, parents and friends have made financial mistakes that the younger generation can learn from and avoid. It’s interesting to look at Millennial’s spending habits, how they differ from others and point at money mistakes that the Generation Z could learn from.
Stick by your budget
There is an idea that budgeting leads to a boring lifestyle. Actually, it doesn’t have to be that way. Looking at the lives of many millennials, two of their biggest financial mistakes were to not set a budget or to ignore the budget set. A budget is set in order to keep track of your money, and not to give you a poor lifestyle. “Budgeting is important because it helps you control your spending, track your expenses, and save more money,” Bethebudget.com says. A good budget does not necessarily mean completely changing your lifestyle but is only about being smart about your choices and noting your income and expenses. It’s about knowing where your money is going. Ignoring your budget is a way of how money mistakes begin. Learn about how to budget successfully here.
You’re probably tired of hearing people telling you to save and how important it is to put some money aside for a rainy day. Whilst it’s fun to spend the money you receive, it’s much more important to have a sum put aside saved for emergencies. An emergency fund could be described as the backbone of steady personal financial plan. Experts suggest that when you’re saving up for an emergency fund, it’s best to have as little debt as possible. If you do have debt, start working on the fund after you have settled the money you owe as it will be easier to add money to the account.
Little things matter
A mistake millennials do is forget about the small purchases made on a day-to-day basis. Whether it’s buying a cup of coffee and a muffin on the way to work or paying an amount of money for mobile data every month, think about whether it’s possible to be saving that money or spending elsewhere. See whether you can cut back from making these little purchases and whether there are any better deals or bundles that you can opt for. When put together, you’ll notice that you’ll be saving quite a substantial amount of money.
Think about the future
It’s never too early to start saving for retirement. Actually, a well known advice experts give is to start saving early, and the sooner you start, the more comfortable your retirement will be. If you don’t want to plan that much ahead, start thinking about a holiday that you’ve been longing for and plan for it. This way, you’ll be prepared and know how to balance your finances.
Technology has eased our lives as it progressed. Nowadays, we have greater resources and ways to manage our finances from the comfort of our home and even from our mobile phones. Furthermore, with life’s busy pace, it’s very easy to forget about certain payments due, that will end up costing you more. That’s why you should start making autopayments – here you will be asking your bank to make an automatic payment every month or so, so that you’ll be paying in time and avoiding any extra costs.
Again, technology has made it easier for everyone to invest and secure a better financial future. The development of apps, such as deVere Crypto or Catalyst have made it possible to make investments on your own, without any need of a third party. You can easily find information and articles online that will teach you more about investments and will hopefully guide you to making the right calls.