Lots of millennials still prefer not to think about the future, and certainly not about investments and financial planning. This is a cohort who have largely shied away from the trappings of ‘responsible adulthood’, though as more and more of them reach their 30s and millennials become the inheritors of ‘baby boomer’ wealth – it’s time to get a little more serious.
Whilst millennials might not like thinking about money very much, it’s still as key a concern for them as it is for every other age-group. The millennial age group is often compared – both favourably and unfavourably – to baby boomers, and many of them have parents or grandparents from this demographic, who are keen to include them in upcoming inheritances. There are many ways millennials can start planning for their own financial futures, helping to create a more favourable picture in the decades to come.
Plan Your Budget
Living within a budget needn’t be dull, and there is something very appealing about never having to panic because you know where (almost) every penny is allocated throughout the month. To help you stay on track, create your own template online or hand-write your budget. Keep track of all the income you receive over a month and place it against any necessary expenditures.
Reassess Your Budget
Budgeting isn’t static, so what you must spend each month and what you can invest or spend outside of your commitments, is also sure to fluctuate with time. Never be afraid to revisit your old budget and look for new opportunities to either cut back further or loosen the purse strings in accordance with your changing circumstances. Try and develop an emergency fund which could tide you over for a short while, should the need arise. This helps to put the mind at ease and ensures a more proactive approach than may immediately seem natural. It’s nonetheless important to develop new financial skills, and budgeting is one of the most important of all.
Learning how to take financial responsibility is one of the best ways to ensure that when the inheritance comes, it isn’t quickly squandered on prior mistakes, or misspent by accident. Remain accountable for your financial decisions and keep track of your expenditures. This does not mean you can never treat yourself – but it does mean you need to be realistic about how and when this is appropriate. Follow these guidelines, and you’re well on your way to brighter finances.