Money Management For Millennials

Money management

Millennials face a lot of financial challenges that their parents just didn’t have to deal with. The gap between wages and the cost of living is getting larger and young people are struggling more than ever to save money and make big investments. It’s more important than ever before for young people to learn how to manage their money, so here are some tips you should try to follow.

Build a credit score
It's a never-ending cycle: if you want to borrow money you need to have a good credit score, but you can’t get a good credit score if you’ve never borrowed money. Luckily, there are some ways that you can build a credit score without taking out a massive loan. The easiest way is to build credit card debts and then pay them off. That doesn’t mean you should get a credit card and just start spending recklessly. Instead, get a credit card and use it to make small purchases like your weekly grocery shops and then pay it off right away. You’ll start to build a healthy credit score so why it comes to borrowing money for your mortgage etc. in later life. 

Start saving for retirement
It seems like it’s way too early to start saving for retirement right now but it’s a sensible thing to do. You don’t need to be putting loads away but if you’re just saving a small amount each month, that takes off the pressure when you get older. As soon as you start putting money aside for retirement, you’ll be building up interest so the earlier you start, the better. 

Nerd "fact": What’s the most powerful force in the universe? It’s not gravity. It’s not even love... It's accrued interest!

Manage your spending
The cost of living is going up but you can make things more manageable if you watch your spending. That doesn’t mean you need to make any major lifestyle changes, you just need to cut out all of the small, unnecessary expenses. Things like shop bought sandwiches for lunch or takeaway coffees don’t seem like they’re costing you that much but if you actually start adding up how much you’re spending on that stuff, you’ll be shocked. The best thing to do is make a budget starting with everything that you actually need to spend money on, then cut out the unnecessary. It's OK to allocate a budget to going out, etc. but make sure you keep to it!


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