10 APRIL 2019
5 Savvy Money Moves to Make as a Millennial
Do you need a fast cash loan to keep with today’s rapidly rising living costs? How about an interest free loan to improve your credit score after you fell behind on student loan payments? If so, you might just be a millennial.
Millennials are always getting blamed for the next bad thing that’s going on in society, but millennials (those born between 1981 and 1996) have also inherited less favourable economic conditions than any generation since the 1930s. Coming of age during the great recession didn’t help, either. All told, Millennials aren’t entirely to blame for their famed money troubles or poor money skills.
Millennials are now the largest generation in the workforce, but millennial Kiwis are finding their feet in a New Zealand of rocketing home prices and rent. Nearly 750,000 New Zealanders had student loans to pay off, and wages haven’t necessarily kept pace with the rising cost of living - yikes!
So, what can you do to get on top of your finances if you’re a millennial? We’ve got some smart money moves on hand for every millennial out there – read on below!
1. Create a budget
We know, we know – you’ve heard this before and you’ll keep hearing it again – creating a budget is a must! Listing and tracking all your expenses is essential to your long-term financial stability.
To budget well, you should lay out your expenses, subtract them from your income, and write down ambitious but realistic financial or savings goals you can work toward. Having a budget helps keep track of the smaller indulgence expenses that take a bite out of your savings. It also helps empower you to take control of your financial future by making your money real and measurable to you.
2. Practice good spending habits
We all have expenses in our lives that are virtually unavoidable. There are bills to pay, groceries to buy, a car to keep on the road or bus fares to set aside… the list can seem endless. But let’s be real, there are just too many optional expenses in our month that can add up quickly, like going out for dinner or buying takeaway for lunch.
We’re not saying you shouldn’t treat yourself now and again but developing healthy spending habits is important to build your future financial security. Designate money in your budget for these types of purchases and limit the number of times you eat out or go shopping. And before making any major purchases, like a new phone, calculate how long it will take you to recover the lost savings and then ask yourself: “Is this really something I need now?” If not, it can probably wait!
3. Learn about investing
Millennials aren’t as focused on retirement at this early stage of their adult lives as previous generations have been. That’s largely because more pressing financial obligations in the present have taken priority. But that doesn’t mean you should let your retirement savings fall by the wayside. Retirement is still approaching, whether you’re planning for it or not. If you find yourself busy with long hours and steep expenses, learning how to make your money work for you is a great way to build your nest egg more quickly – or let your KiwiSaver provider do it for you.
The financial crisis in 2008/2009 left many millennials sceptical of investing and are not so comfortable with risking their own money, but learning how to invest responsibly is still critical.
4. Keep track of your credit score
Keeping track of your credit score will enable you to fix any incorrect information before your credit report becomes necessary. You could even take out a bad credit loan while you still have time to improve your credit score.
5. Start saving more money
It seems simple, but too few millennials in New Zealand are setting aside money from their payslips to plan for the future. A suggestion? Look up a good savings interest calculator and see what could become of your money if you set aside $20 NZD a month. How about $50 every month? How much does it grow at 3% interest? 9%? Over 30 years? 50 years? The results may surprise you!
The truth is, the longer you wait, the more you’ll have to set aside every month to prepare.
Take control of your future
No interest loans and bad credit loans can help you improve your financial stability by improving your credit score and investing in plans that will grow in value over the years. Don’t wait. Contact Superloans today to learn more!