To say the financial aspects of life has changed between the Millennials and Baby Boomers would be an understatement. A dollar does not go as far as it used to. Millennials are pretty much at the helm, rigging up their captain seat. Our generation is strapping up, ready to handle the big bad world.
But we don’t even know what we don’t know.
Now that is a scary thought.
Money may not make the world a happier place. But it sure does help. The problem is the current schooling systems prepare scholars for the corporate ladder, and not real-life challenges that the world throws our way.
Which leaves us precariously hanging off the financial edge – here are some of the most common, simple mistakes that we millennials are making on a monthly basis:
Being Intimidated By The Consequence Of A Credit Card
The 2000’s was a rough financial period. With the economic recession, markets plummets, jobs were pillaged, and expenses went up.
Although at the time, we millennials may not have understood why and what was causing so much stress, we still watched as our parents and family members struggled to shoulder the weight of endless debt thanks to high credit.
Which has left us scared to even consider the thought of grabbing a credit card.
The truth is, a credit card is not all that bad–IF you know how to handle it responsibly. Meaning you do not spend money that you do not already have set aside for that expense.
The reason why not going with a credit card is a mistake is because, without a credit history (record), you will be unable to get loans, and financial aid for larger investments such as real estate, a car, or similar assets. If you mess up your credit it isn’t the end of the world. There are ways to get your credit back on track. It might take awhile–but it is possible.
Prioritizing Crazy Student Loan Expenses Over Retirement Funds
When you consider something that only needs to happen in 40+ years, it tends to take a background role in your level of priorities. Which is one of the biggest problems that millennials face in the current age.
In America, almost two-thirds of students are in a heap of student loan debt. Due to the looming consequences of not paying this off, for years the retirement funds get ignored on the premises that there is plenty of time.
Remember, “If you keep on saying tomorrow, before long – you will no longer have a tomorrow to wait for.”
Jumping From Living Like A Pawn To Living Like The King
Tell me if you disagree.
But from my own personal experience, us millennials – we are far more “independent” then we like to admit. Personally, the college days were a mess. Bug-infested, yellow-stained walled, cheap coffee slums.
I’m sure if you did not have this experience – it was still pretty darn close.
Which is why far too many millennials jump at the opportunity to upgrade to a luxury apartment right out of college.
The problem is you will have almost no career prospects, huge student loans to pay off, some credit card difficulty (who doesn’t), and so forth – which makes these fancy homes a bit out of your league.
Rather settle for something that you can afford and work your way up the food ladder.
Typically, if more than half of your monthly budget is being tossed into your home, you made a mistake somewhere along the way. Trust me, I learned this the hard way – save yourself the sleepless ramen-noodle filled nights.
It is always a great idea to start an extra savings account, which serves as an emergency fund. After all, we all know how life loves to throw curve balls when things seem to be going smoothly
Budgets Suck – I Know Right!
No, but seriously, I hate budgeting. It seems like such a waste of time. Or at least, that’s what I thought when I first got tossed onto the cold streets to find my way. Now, I cannot go a day without reverting to my budget to manage my cash flow and make sure everything is going out according to plan.
This sounds like more of a mission then it Is worth, right?
Unfortunately, one of the most important skills you will ever learn is to master the art of your cash flow. The main reason behind a budget is not really to set a limit of control over your expenses. But rather to give you a broad understanding of where your money is actually going.
You know, when you buy too much coffee, and cannot afford Netflix because of those warm fuzzy slippers you bought the other day – wow, now that was confusing.
Budgeting also helps you keep track of pending expenses, which may be delayed due to the payment process. For example, credit card payments. Which is why it is so darn important. Like, really – get your budget sorted out today!