There are a lot of financial risks when it comes to being a millennial or zoomer. The Millennial generation is currently the largest demographic in the workforce. They are also the generation that has been hit hardest by the 2008 recession and its aftermath. With high levels of student debt, meager savings, and less access to financial stability than previous generations, many Millennials are feeling financially insecure. But it’s the same for Gen Z as well.
These two generations are also more likely than their older counterparts to be freelancers or contract workers who don’t have access to employer-sponsored benefits like health care or 401(k)s. As a result, they’re more likely to experience periods of unemployment or underemployment in their careers. The COVID-19 pandemic has hit quite hard as well so younger millennials and older Gen Z’ers have been hit very hard due to that. While many young professionals are struggling, it’s important to know financial health needs to come first. Even if it sounds tough or nearly impossible to do, these tips will help you out as these are crucial.
Understand the budgeting
Budgeting is something that is often taught to kids at a young age, but it’s something that will need to stick with you for the rest of your life. Whether you’re an employee or business owner, you’re going to have to learn to budget for your personal life. It can be very difficult wanting to think about the long term in life but it’s absolutely a must if you want to have a strong financial future. There are plenty of helpful apps online such as Mint that can help you budget but even the old fashion way with an Excel sheet can do the trick as well.
Understand the different options
When it comes to finances, it can be tricky. Chances are, you’re asking yourself a whole array of questions such as “what is revolving credit?”. It’s normal to ask these questions, but it’s also very important to learn as well. You may be surprised how much of a game-changer your finances will be once you learn about all the options that are available to you out there.
Create a plan for your debt
Debt is something that’s very common to be in. The idea of debt itself can be scary, but it truly doesn’t have to be a scary monster. It can be hard to save up for the future when you have debt looming over your head. But it’s also important to understand that debt is something that has to be pushed out. So if you have any credit cards or loans that are high interest, then it’s best to go ahead and tackle those first. Also, it may help to look into consolidating your debt or maybe even see what the repayment options are.
Don’t let your current financial health hold you back
It’s easier said than done, but don’t let yourself think that where you are right now is all you’re ever going to be at. It can be tough to look past it, but things will get better. You will get the chance to apply and purchase your first property, but it’s something that will take time. Just be patient and keep working hard.
What do you think?