How Millennials Can Begin Planning for Their Financial Futures

25-06-2018 | Amanda Cole |

How Millennials Can Begin Planning for Their Financial Futures

Millennials have been feeling the financial squeeze for some time now.

Despite the progress that has been made economically across the globe, millennials still find themselves in an often-bleak economic position.

It is therefore vital that millennials understand the various ways in which they can make plans now to secure their finances in the future.

Go Unbranded

When we buy branded clothes, we are paying a great deal of money just for the privilege of having the logo of an established brand on our clothes.

You can save yourself a lot of money by simply opting for some much cheaper, but unbranded, clothes.

If you shop around, you will still be able to find high quality garments to suit any occasion and style, but you won’t have to pay through the nose for them.

It’s not just our clothes that we end up overspending on because of branding.

There are a plethora of everyday items and essentials, including food and drink, where we can choose to buy the branded or the unbranded version. Don’t forget to use coupons. Need some? Go see Coupons Monk.

In the vast majority of cases, you are not going to feel any difference from making the switch to an unbranded alternative.

Sure, that generic supermarket cola might not taste as good as Coca-Cola, but it is a third of the price!

When it comes to things like food, you will notice the difference the most.

You also need to strike a careful balance with food; if you aim for things that are too cheap, they might be of an overall lower quality.

This means that you aren’t getting as much nutrition as you might think you are from your meals, not a good state of affairs!

Make Your Own Meals

Making the switch from branded products to their generic equivalents will certainly set you on the right path when it comes to saving money, but on its own it will only be so effective.

In order to really make some serious savings on your food, without sacrificing the quality or nutritional value of your meals, you should prepare your own meals from scratch.

It can be tempting to buy meals ready-made.

But if you do this, you will be paying much more than is necessary for food that will usually be of a lower quality to that which you could have prepared yourself.

There are a range of options out there for anyone who wants to learn how to cook.

The internet is, as always, a fantastic and expansive resource for discovering new recipes, but there is a growing library of apps which are designed to help the user learn how to cook.

If you usually buy yourself a lunch, even if it’s just a sandwich, you will find that making your own lunches at home and bringing them in will instantly make you some noticeable savings.

The meals you prepare for yourself don’t have to be at all complicated, even the simple home cooked meal will be more nutritious than a pre-packaged store-bought meal.

Use Public Transport

Many people consider learning to drive to be a rite of passage, and they correspondingly take up lessons at the earliest opportunity.

While there is no doubt that learning to drive is an attractive prospect, and the freedom it offers is clearly something that lots of young people value, it is also a very expensive prospect.

Not only is there the cost of lessons, these are followed up by the costs of buying a car, buying insurance, and keeping petrol in the tank.

The costs of a car are ongoing, and in some cases, they are totally unwarranted.

Research suggests that millennials are less eager to get behind the wheel than previous generations have been.

This is a reflection of a greater environmental awareness amongst Millennials, as well as the financial realities for their generation.

Driving simply isn’t as attractive to Millennials as it has been in the past.

Yet many Millennials still learn to drive and buy a car, even though they could get by just fine using public transport.

While it’s unfortunately true that public transport doesn’t exactly offer terrific value for money, that isn’t to say that public transport can’t do a perfectly good job of getting you around.

Some people, particularly those living in more rural areas, might find that the public transport infrastructure around them is lacking.

In such cases, a personal vehicle may well be your only option. An electric car is probably out of the price range of most Millennials, but they are an option for the more environmentally conscious.

Invest Your Savings

Although you might not think it from reading the usual analyses of how millennials live, many millennials have managed their money wisely so far in life, resulting in sizeable savings for them to draw upon now.

For millennials in this position, finding ways to invest that money can help to turn a relatively modest investment into a sizeable lump of cash.

There are a number of different ways of investing your money, the only limits are your own imagination.

In addition to the traditional investment options, stocks, shares, etc., there are also a host of investment instruments which are relatively safe and secure. In fact, the options for investing money are more expansive than ever before.

Furthermore, many of the traditional barriers to investing have been lowered or removed. Of particular note, it is now viable to begin investing with a smaller initial cash pool than ever before.

Research conducted by Wellesley suggests that 24% of British households have no savings to fall back on, but the findings from Wellesley are less surprising to millennials, who bore the brunt of the last financial crisis.

Investing your savings, either manually or through an investment management service, is the smartest way of securing a financial future for yourself.

Remember, safe investments might take longer to produce meaningful returns, but in exchange for that you are less likely to lose your money.

Make Yourself a Budget

Producing a personal budget for yourself is a very effective tool for those who are serious about taking control of their finances.

Anyone can make themselves a budget, but the real challenge lies in sticking to the budget you set yourself.

In order to give yourself a realistic chance of sticking to your budget, you will need to think carefully about it.

It is also vital that you are prepared to tweak and adjust your budget until it is one that you can work with and which is helping you to save money effectively.

Creating a reliable budget that you can stick to will require you to have a good grasp of your current financial situation.

Many people find it helpful to spend some time tracking their spending habits and working out exactly where their money is going before they start making detailed plans for how to better manage it.

It is never too early, or too late, to begin preparing for your financial future.

Millennials are facing more pressures than any other age group when it comes to their personal finances.

However, with the right approach, it is possible for any millennial to plan for their financial futures with minimal effort.

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