We all know that saving money isn’t the coolest. But it’s important to learn about saving, spending and using your money. Here are the most common mistakes the newest generation is continually making.
1. Waiting to get started saving. It’s not always about instant gratification. In fact, putting some money aside now does restrict you from buying the latest tech gadget (or that handbag). But spending some now stops you from spending a whole lot more if you put money away. The general rule is that every 7 years you delay cuts your retirement fund in half.
2. Underestimating the value of a budget. A budget isn’t the coolest thing to create, but Millennials need to understand the power of knowing where their money is going, and directing it purposefully. The sooner you simply learn to handle your money, the better off the future will be.
3. Ignoring the importance of an emergency fund. Just because it’s not an emergency now doesn’t mean you shouldn’t prepare for one. One car accident, one trip to the hospital, one unexpected illness could cost you thousands if you’re not prepared. You just don’t know what will happen in the future, so get an emergency fund in place straight away.
4. Most Millennials fail to realize that retirement isn’t that far away. Life seems to stretch on indefinitely, but the reality is that retirement isn’t that far. It’s going to come sooner than you think and a plan for the future, savings and investments, will prepare you now for that eventual outcome.
5. Underestimating the value of establishing and protecting your credit. Bad financial decisions made now can haunt you longer than a Miley Cyrus music video. Debt stays around forever. Protect your credit, and you’ll be able to use later when you need it.
6. Millennials are the most likely to delay purchasing health insurance. It’s expensive, you feel you don’t need it yet, and it’s doing you no good right now. But having an adequate health insurance plan covers you for all the bad mistakes you’re sure to make at this point in time. Mom and Dad don’t count either as a reputable insurance plan.
7. Accumulating unnecessary debt. If you’re finding debt weighted around you, it could be because you haven’t learned to manage it properly. Get a handle on the amount of debt you’re creating and that you’re accumulating. It could be less costly to simply say no to using credit and paying cash, earning extra or adding it into your budget.
By avoiding these common mistakes, you’re already miles ahead on the road of financial literacy. Your peers will envy you in just a few short years. The Millennials who think about their money now will be thanking themselves in the future. Share this and help save as many Millennials as you can!