As much as millennials are the future, we are yet to learn some lessons when it comes to managing our finances and I myself is very guilty of that.
Having said that, here are some real mistakes millennials make that put their finances in jeopardy:
No retirement savings
I began working at the age of 22 and I won’t even lie to you, I did not save a dime for the first year.
Why is that?
Many reasons but the fact still remains the same: I am young and know that retirement is not around the corner for another 4.5 decades at the least.
When it comes to your retirement fund, it is never to early to begin to save. It would be very unfortunate if you’d have to prolong your work life just to save money, thereby placing immense pressure on yourself in your 50s, 60s.
The only thing worst than not saving early would be not saving at all which I am also guilty of. For the majority of us, it is simply because we feel that we are not earning enough to begin saving but the truth is, even if you are earning $500/month, saving at $5 a month is a start.
Not creating an Emergency Fund
I will try my best to have emergency money at all times. Whether it may be for transportation or what-have-you, it is very important. So is having an emergency fund or account for the unforeseen.
Not Getting Insurance
Be it in the form of health, car or even life insurance, it is super important.
Not Investing Enough
I, myself, have recently begun thinking about investing. Investing comes in many forms.
Living Beyond Their Means
With so many products out there geared to persons of my demographic, it can be hard, sometimes, to stay focused and not spend more money than one makes. For example, buying designer items that will keep you in debt for a year.
The end goal here is to make sure that you will have money on hand and to well, enjoy your life. You do not have to splurge in order to have fun or to have a nice life.