How to Become a Financially Secure Millennial
By Baxter Jacinto
Sure, we’re young, wild and free now, but you know it’s not going to last forever. YOLO may seem like an ideal mindset to have, but the chances of you becoming broke by living life like there’s no tomorrow are pretty high. It would be prudent for you to prepare now so that you can actually afford to be reckless in the future.
Here’s a couple of things to remember as you work your way towards financial security.
8. Expectations vs. Reality
You only have 24 hours a day to work on your goals so stop dreaming and start doing. Narrow down your immediate goals. Knowing that time is very limited, you have to learn to prioritize.
7. Master the art of budgeting
Do yourself a favor, track your monthly expenses using a budget template in excel here. There are also apps like this and this to help you keep track where your money goes. These will help you determine what you can and cannot afford based on your monthly cash flow, and hopefully prevent mindless shopping sprees.
6. Treat your savings as part of your expenses
Don’t fall into this trap: Receive Salary – Spend Salary = Save Leftover. Instead, upon getting your salary, set aside your savings (and investments) immediately before you start purchasing anything. This means you have to adopt the mindset of treating your savings as part of your monthly expenses.
5. Stick to your commitments
Don’t beat around the bush if you’ve already made previous commitments (like to your savings!) –learn to say “No” with conviction.
4. Tame materialism and consumerism
Yes, you may have the cash right now to buy the latest pair of shoes, but will it mean that you will have to skip lunch for a week? If no, then proceed with the purchase. If yes, then you know what to do: skip it.
3. Mind your health
Start investing in your health as early as possible. Aim for a healthy lifestyle. Make sure you have a health card and life insurance. Your parents are right: “Mahal magkasakit.” That is a universal fact.
2. Ask for advice
Don’t depend too much on Google about life advice. Seek the advice of older people. Hey, they’ve been there. There are a lot of financial literacy campaign programs going around. Be on the lookout for those. Be fervent in expanding your knowledge about life, especially financial literacy, as early as possible.
1. Learn to invest
Savings are good, but investments, stock in particular, are better. It’s the most convenient way to rack up some passive income while you’re occupied with your day job.
What other financial advice can you suggest to millennials? Fire away at the comments section!