You’re not alone in the current financial struggles! It may shock you to know that 78 percent of millennials are pressured about planning and putting their finances in order come 2020. Not many young adults are spared of this. We all find ourselves sometimes in the midst of the crisis and never knew where to turn.
The year 2020 is not too far away. As the older generation gear up to usher in a new year with solid financial backbone, millennial are not able to say the same. They are burdened by the expected financial demands that will follow the New Year.
Getting your finances in order doesn’t necessarily mean you are going to deprive yourself of enjoying life as you should, no. The vacation, the travels, the life of freedom can still be yours with a good financial disciple to guide.
If you’re committed to getting your finances in order in 2020 here are 9 ways to get you there.
1. Cut down on your expenses
It is going to hurt no doubt; yet you just have to do it to make way for other pressing needs and plans. Rent and transportation are the primary monthly expenditure that most millennial grapple with. Making sacrifices to keep the bills down can have a significant impact. “It’s got to include a little suffering,” says John Spooner, the managing director, Morgan Stanley.
Car payments combined with fuel and insurance could take your monthly budget, get a way around bringing things down considerably. Keep in mind that it is no small budget to maintain a car coupled with expenses on gas. Can you go the alternative way with public transportation?
2. Prioritize income
This is the time to see making more money an essential part of your life, it is your prime age and it won’t be that forever. If you aren’t making enough why not pick up more working hours, do the over time if you can and save up as much as you can. That little addition can add up to something huge with time. Likewise, if you work more, you have less time to spend as much. Never look down on income potential at this period of your life, it is the most valuable asset you should prioritize and work towards to put your finances in order for 2020.
3. Plan for the future
Don’t spend all you make for the month. Invest on a retirement plan if your company has one in place. It’s easy to give the excuse that you’re not making enough and so won’t go for this, no. Make a commitment towards this. Retirement plans work well by compounding your savings over time, take advantage of this and move along with a solid plan to get your future standing on a solid ground. Spooner says it’s a must to have a plan for one’s future, particularly to avoid being trapped in a life one doesn’t want to live: ⠀what do you want for your life? Figure this out and plan towards it, it is the important thing to think about right now.
Besides working out a retirement plan savings, the financial market is another area you can invest into. Search out companies such as those in the services and products sector and invest in them. Make sure to invest in only viable companies that will still be in business for years to come. It surely helps. Stay in contact with capital markets around the world so that you know what is going on. Most people focus exclusively on domestic news, but that can be a mistake when you exchange currencies or invest significantly. The financial situation worldwide will better prepare you for all sorts of predictions in the economy.
4. Work out a plan to take care of your student loans
Student loans are really a complicated thing. When you take up multiple loans by semester, it simply piles up by the time you’re graduating. It is possible that you have close to 10 different loans to settle after graduation. Paying them off will really be a bone in the neck. Consolidating the loans may even not do much. People with higher debt profile consider income-based repayment strategies that use a portion of their discretionary income. You can adopt same to get on your debt and cut it down drastically.
5. Other tips to help your finances in 2020
Here, working on your habit can raise you some money and help put your finances in order in 2020. There are those expenses that are not in the essential category.
6. Avoid eating out
Eating out less can save you money over a year. While cooking all meals at home, you’ll save a lot of more money.
7. Share an apartment instead
If you live on a paycheck, try finding luxuries or other unnecessary things that you would be able to spare a little. On the accommodation side, share an apartment with a friend, get a roommate if you’re already paying for a space that can accommodate another small family.
8. A unique savings approach
There are a lot more options to help you have your finances in order. A valuable savings technique is to set up an automatic withdrawal from your main bank account directly into a high-interest savings account. At first, this may seem inconvenient, but after a few months, you’re going to treat it like another bill, and your savings will rise to an impressive amount in no time.
9. Use your bank’s ATM
How about the use of the automated teller machine? Save cost by using the ATM of your own bank. You know what it is, by using other banks’ ATM you pay extra fees, don’t say it is minimal. Develop this habit and you will be amazed to see how little can turn out to be something significant over a period of time.
One thing to get right in life is the aspect of personal finance. If you fail to do this when the time is right, the subsequent outcome may not be an easy one to handle, the time to work at it is now.