7 Financial Tips for Broke Millennials
Well, it’s official. Since the Coronavirus Pandemic of 2020, Millenials have been branded the “unluckiest generation in history.” Despite the fact that millennials have higher education levels than opposing generations, we are still earning 20% less than our boomer parents did at the same age.
We also live with the future of a doubtful social security system, student debt, an uncertain job market, an impossible housing market, and sky-rocketing rent. So how do we rewrite the narrative? In this article, we’ll go over seven helpful financial tips for Millennials to follow. And no, you don’t have to cut out your weekend brunches.
- Focus on Your “Why”
What is money, and what does it mean to you? Simply put, money is a method of exchange and transaction. But what does it mean to you? Does it equate to power, happiness, freedom, or something else?
The first step into budgeting your money is by identifying your relationship with it. Money is a tool to achieve your goals and independence. It’s time to make your finances work for you and your lifestyle.
Here are some questions to think about:
-What do you want vs. what do you need?
-Why do you spend your money on certain things?
-What makes you happy?
By using the powerful reflection tool, you can reframe your relationship and mindset, thus, optimizing your wealth.
- Develop a Retirement Strategy
When it comes to saving for retirement, the younger, the better. If you don’t have a plan, now is the time to make one. Focus on starting today, even if you don’t know where to begin. By creating a plan early, you allow compound interest to do its job and can reap the full benefits in the long run.
Your future self is going to thank you. If your employer offers a 401(k), it may allow you to contribute pre-tax money, which can be a significant advantage. Or, if your employer offers a Roth 401(k), which uses income after taxes, consider what your income tax bracket will be in retirement to help you decide if this is right for you.
If you are a freelancer or self-employed like myself, there are other options. A SIMPLE IRA, a Roth IRA, a Solo 401(k), and a SEP IRA are all on the table. It’s essential to do your research before and decide which one works best for you.
- Build Better Money Habits
Go over your finances. Make it an enjoyable experience. For me, I like to light a candle, sit down with a glass of wine, and go over my income and expenses. While reviewing, I make a note of what unnecessary costs are showing. Now is the time to be honest with myself-- what do I need?
Good money habits take time and effort, especially if you’re comfortable with your current lifestyle. You can’t try and “willpower” your way to success. Don’t get me wrong; discipline is required to reach your goals. But, it’s not about constantly saying “no.” It’s about pushing yourself to work a little harder and be more mindful about your spending habits.
What’s something small you can do today?
Well, you could delete your food delivery apps. You know, the ones where you pay $30 for a sandwich that would usually cost $12 in-store.
- Get Creative
There are so many creative ways to save and make money. One of my favorites is holding on to and rolling my change. Of course, you can use Coinstar machines as well, but those take a small percentage, and I’m all about saving!
Here are some more creative ways to save money:
-Pick one day of the week where you are NOT allowed to spend.
-Make deals/negotiations. You’ll be surprised by how many people enjoy bartering.
-Choose a bill to save in an envelop and open at the end of the year. For example, when I was bartending, I held all of my $10 bills.
-Challenge yourself to re-use instead of buying new.
-Check your subscriptions. Do you need them?
-Turn down your thermostat and bundle up.
-Buy clothes from thrift stores.
-Make negotiations/barter agreements.
-Cut coupons or download couponing apps.
- Utilize Budgeting Apps and Online Tools
There are a ton of free online tools to help you get on track. You can track your spending, visualize your money with charts and graphs, break down your goals, create a plan, and so much more.
- Develop a Side Hustle, or Even Your Entity
Are you an entrepreneur? Can your hobby bring in extra cash? Figure it out and follow it! Develop a side hustle and diversifying your income streams. Whether you drive with Uber/Lyft, start a blog, walk dogs, or host an Airbnb, there are limitless options!
Another great idea is using platforms like Fiverr or WritersWork to build your freelance client base. Not sure of your special skill? Take online courses that provide certifications. This provides both a great learning experience and credibility for future employers.
- Invest in Cryptocurrency
Another great tip for saving and investing in your future is by joining the cryptocurrency movement. Crypto has been described as a transformative technology that could revolutionize a number of industries. And since they cannot be printed or seized, cryptocurrencies provide a safe store of value. Although many speculate that investing in Crypto is risky, it is also potentially extremely profitable. Make sure to do your research to maximize your potential.
Visit https://gokhshteinmedia.com for helpful tips and advice in the cryptocurrency community.
As you can see there is hope for the unluckiest generation; you may just have to make your own. So, start that Etsy shop, start being real with yourself, and invest!
You got this!