We live in a time when relationships with money and finance are as complex as they have ever been. And sadly, it doesn’t seem like things will be getting any simpler or easier any time soon. Not to mention the young people or ‘millennials’ that are carrying student-debt, and lacking in some serious financial management skills. If it isn’t something that is taught at home, then where is it going to be taught? Plus, getting money or credit can be one of the quickest transactions that you will ever have.
So if you have found yourself in a bit of pickle with your finances, then here are some of the mistakes to look out for, so you can be aware and avoid these pitfalls of millennial life.
Lack of Goals
If you don’t have a plan, then how do you know where you are going? You can’t be ticking thing off your to-do list, if you haven’t got anything in particular that you want to get done! So in order to avoid this, and to make sure that you are financially set for your life now and in the future, you need to think about your goals. Is it to run a business or have a certain amount saved in the bank? Then once you have your goals, you can work out a way to achieve them. Do what works for you and don’t worry about anyone else.
Investing in the Wrong Things
Investing can sound really attractive to the younger generation, as it can be a good way to get a return on your investment, without you really having to do a lot about it. But this is only true if you have been investing in the right things all along. When you invest in the wrong things, then you can be just wasting your money, or not getting as good of a deal for it. There are some safer options out there, like property and looking to buy silver or gold, for instance. But there are some slightly riskier options, that done well can earn you some big bucks. Cryptocurrency is one of those, as well as things like particular stocks and shares.
Not Mastering Cash Flow
In order to manage your finances well, then cash flow can be really key. One of the first things that is often done badly or not at all, is budgeting. Of course, it isn’t anything particularly glamorous, but it can be vital for a healthy bank balance and to stay in the black. The second part of managing your cash flow is by making sure that you keep checking your budget and keep checking what you are spending. So going over your bank statements and bills is a good idea, that not many can master. You have to be honest with yourself and not forget about the small spending here and there, as it can all add up. But when you stay on top of it, then it will keep you out of debt, and make sure that you’re on the right financial track.