One of the things that a lot of people have against the modern education system is the fact that it focuses too much on trivia and avoids talking about things that really matter. We’re talking about life-and-death matters such as taxes and finance in general. In order to rectify this injustice at least a bit, here are top four finance tips that every millennial need to hear.
1. Make separate accounts
While it may seem counterintuitive to keep separate accounts when you can barely afford to keep one, you need to understand that this is something that you’ll have to get used to. Why? Well, because it’s much easier to transfer 10 percent of your pay into a separate account than to just stop yourself from spending when you reach last 10 percent. Remember, when it comes to your budget management, you’re your worst enemy. This is why the key to leading a healthy financial life sometimes relies on tricking and restraining yourself even if you feel like you don’t need it.
2. Have a side-job
Another thing you need to understand is that the age where you could support a family of four on a single salary is long gone. Therefore, you might want to diversify your streams of income. Luckily, for a millennial with access to the internet, the options are limitless. There are so many lines of work in which you could freelance, from creative writing to selling photographs that you make with your phone. All in all, finding a side-job online needs to become something that you’re seriously considering.
3. Plan your purchases before you reach the store
Most stores gather owe the bulk of their profit to their ability to persuade you to buy on spot. To avoid this, you must once again use the advantage of being a tech-savvy millennial. This isn’t exclusive to just grocery shopping but for any kind of purchase that you intend to buy. Even if you just want to get some wall frames or a writing board for your room, you can probably download a catalog on their website and see what they have in offer. In this way, you get some time to think about the purchase and make a rational decision, without feeling pushed to make a choice on whether to buy before you leave the store. This is a simple trick, yet a highly effective one.
4. Don’t be afraid of debt
At the end of the day, you need to understand that while owing money is generally regarded as a negative thing, not all debt is equally bad. For instance, if you had a business plan and no angel investor on your side, getting a loan in order to start a venue would definitely not be a negative thing. Moreover, sometimes a smaller debt can save you from being forced to sell a much more valuable asset. You can pay off this loan in a year or two and avoid selling an important family heirloom or something that you’ll need in the future. Of course, we’re not suggesting that you should go head-on into the debt. We’re merely suggesting that it wouldn’t be the end of the world, even if you did.
At the end of the day, you need to understand that even if you make an honest mistake, it will simply become an important lesson. These simple finance tips can make a huge difference without making you change your habits and behaviors that much. Sure, if you want to do more, there’s always something extra you can do. Nonetheless, the above-discussed four can always serve as a solid start.