Millennials get a bad reputation for just about everything, but one place that we can certainly do better is with money management. Choke it up to our desire for endless avocado toast breakfasts or weeknight Seamless deliveries, but common money mistakes can keep us from achieving financial security, planning for our futures, and being resilient to unexpected occurrences.
LIVING WITHOUT A BUDGET
These days there is no excuse to be living without a budget. Budgets shouldn’t be seen as restrictive, in fact, you should see them as goals! Celebrate when you keep within a budget -and not by buying yourself something nice! Between online services like Mint and PocketGuard, you should be able to track your spending, allocate budgets for spending, and set goals for saving. Use your phone for good instead of evil.
RACKING UP DEBT
Live within your means. You know the phrase, your parents have said it a million times and now I’m telling you. Racking up personal debt for student loans – necessary. Racking up personal debt for something mindless like a wedding – completely unnecessary. Be smart with your money and keep your debt as low as possible.
SKIMPING ON HEALTHCARE
When we are young, we think that we are invincible and therefore we end up with super high deductible insurance and skip on benefits. As someone who went through a pretty traumatic health experience, I can tell you firsthand that we are not indestructible. At least get the middle tier plan, you really never know what will happen.
NOT HAVING A BANKER
You have a nail tech for your nails, a stylist for your hair, and an eyebrow lady that you wouldn’t trade for 100 pairs of Jimmy Choos – but what about your money? Millennials are forgetting the importance of banking and having a trusted banker to guide you. As millennials, we will be making huge purchases for the first time like buying a house, refinancing loans, and opening business or investment accounts. Traditionally, going to the bank has always been a hassle – but not anymore. Some banks cater to millennial needs and have technologically advanced branches and personal services.