Financial stress is what millions of people experience today. Many millennials claimed that “often” and “always” have a tight budget – 38% of the respondents. More than that, 46% of millennials state their personal finances control their lives.
The global economic crisis, the COVID-19 pandemic, the rising pricing and inflation, the record levels of consumer and student debt – all of these factors become the reasons why most millennial financial well-being remains stubbornly low.
In the last two years we all have experienced the world pandemic. It caused plenty of people to lose their steady sources of income, leave the workforce, and face sudden financial disruptions. And the thoughts like “Oh, I need money now! But I’m unemployed with no bank account, is there a solution for me?”, made people get a lot of stress. So many people had to search for alternative lending providers who issue financial help to low-income consumers without a need to open a bank account to get the money deposited there.
A recent poll has shown that most millennials believe their financial situation is tough and they won’t be able to earn enough funds to purchase everything they want. Morning Consult’s latest State of Consumer Banking & Payments report states that millennials aren’t confident in their personal finances and are worried that whatever sum of savings they have won’t last for a long time.
Nearly half of the respondents who were millennials claimed that their personal finances control their lives and not vice versa. Thus, they don’t feel confident and secure with their finances and suggest they won’t be able to earn enough cash to buy nice things and cover all the necessary expenses. Seventy-two percent of the respondents mentioned they felt concerned about their current financial situation and believed it will prevent them from living the life of their dreams.
How to Take Control of Your Finances
If you are a millennial or just a person who also suffers from financial insecurity and wants to get professional help with personal finances, here are the best ways to manage them and improve your monetary stability. Whether you have large student debt, want to save more, strive to improve your earning potential, or pay down your credit cards, the following tips will help you take control of your finances and prevent disruptions.
Read Relevant Books
One of the top advice from financial coaches is to start reading books about personal finance. If you are a millennial or an adult who suffers from monetary issues and wants to find answers to your questions and concerns, reading relevant finance-related books and materials may help you a lot.
You may find monetary wisdom from these sources that were crafted by real specialists. Search for the best books on how to get out of debt, save more, control your budget, and build investments. You may find plenty of paper or audio versions that will change your attitude toward personal finances.
Start to Budget Money
Many millennials who suffer from financial insecurity and stress don’t know that budgeting may help them survive and overcome temporary issues with money. If you have debt problems or struggle to make ends meet, you certainly need a budget.
This is a great tool that will open your eyes on how well you manage your income and where the money goes. Many people underestimate the importance of having a regular monthly budget and checking how they spend their funds. Overspending is one of the top reasons for financial stress and low savings.
Repay Current Debt
Almost every millennial has some form of debt. Both young people and adults face certain borrowing obligations from student loans to mortgages and personal loans. Thousands of people have one or several credit cards and not all of them pay down monthly minimum payments. Your aim is to become debt-free and financially independent so you need to repay existing debt.
One of the best solutions is to talk to your crediting institution or lender and try to negotiate better deals and smaller interest rates. If you are an organized and responsible borrower and always make on-time weekly or monthly payments, the creditors will be eager to offer more flexible terms.
Lower Monthly Bills
If you cut your monthly costs and bills you will be able to take control of your personal finances and even save more or allocate more funds toward debt repayment. It’s not very hard to lower your monthly bills if you cut your car expenses or utility payments.
You can reduce your entertainment costs and eat out less often at least for some time. You will be able to notice the difference. As you decide to change your lifestyle and cut off overspending, your financial habits will improve and you will experience less stress.
Stop Using Credit Cards
Millennials and adults who struggle to live paycheck to paycheck should stop relying on their credit cards. Any form of debt should be repaid on time if you want to maintain a good credit history. However, you shouldn’t take out too much debt and have multiple credit cards as it becomes harder to handle them. Having a lot of credit card debt will prevent you from saving for your long-term targets and retirement.
Keep On Saving
Similar to getting out of debt, saving should be consistent. This is another important method to grow your financial stability and reduce stress over money matters. You may turn to the local bank and open a high-interest savings account to boost your savings. Try your best to be organized and make weekly or monthly savings. The portion of your income can be small but it’s necessary to keep on saving according to your schedule so that you see the changes and boost your financial well-being.
In conclusion, millennials faced financial challenges among other consumers during the past two years but they claimed to have more monetary instability compared to adults and other people. If you also suffer from financial issues and want to tackle your funds, you need to follow our professional recommendations on how to boost your personal finances and avoid money-related issues.