Many people think of them as the generation that is going to shake things up. Millennials, the first digital natives, were born between 1981 and 1996. But even though they have had the leading role in the boom of technology as a tool to improve the quality of life, this generation is also contemporary with one the moments of greater economic uncertainty of all times. Their dreams of freedom and greatness have been shattered by financial crisis and high unemployment rates
Financial education may be of great help for them to deal with this context and achieve their goals. Therefore, we are introducing Finances for Millennials, a basic guide to a proper income management.
- Keep a record of your expenses.
This may appear to be quite obvious, but a large part of our income is spent in unnecessary spending that seems to be too insignificant to make a real difference. But when placed together, they amount to a significant sum of money that could be spent in a much smarter way. Start by making a list and, by the end of the month, analyze where are the leaks in your expenses and how could you avoid them.
- Use technology in your own favor.
As mentioned before, millennials are the tech generation. Still, they may sometimes be unaware of the technological tools available. There are many apps and plenty of information out there that can help you to keep a record of payments, visualize your expenses, and make a comprehensive analysis of your finances.
- Create an emergency fund.
Large expenses cannot always be foreseen, so keep some savings for these unpredictable situations. Allocate a part of your income -even if it is a small percentage- to a virtual or an actual piggy bank and forget about that money. An emergency fund can give you peace of mind, get you out of trouble, and prevent you from getting into unnecessary debt.
- Take advantage of your most valuable resource: time.
The future may seem distant, but thinking about it beforehand is fundamental to plan for the life you want to live and to achieve your goals. In order to multiply your capital and build an appropriate financial cushion, a long-term bet is your best choice. In the investment world, a longer time period will deliver higher profits.
A well-organized present is key to a successful future. If you want to learn more on how to raise your capital, our high-level advisors can create a tailor-made financial plan that suits your expectations and needs.