Top 7 Most Common Money Mistakes Millennials Make
By Helen Hepburn
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Millennials are the generation that is hunted most for their marketing attention and financial assets. Thatís why it is essential for them to know what companies they can trust to invest the money in and what financial plan they should develop. The list below is partly contributed and inspired by a certified financial planner and advisor of the CNBC Rianka Dorsainvil who has seen plenty of her millennial clients making the same money mistakes over and over again. Here are the most common 7 mistakes the millennials make when managing their finances.
- Not Knowing How to Budget
Millennials may have learned a little about independence while being at college. Working part-time or taking money from parents could cover the additional expenses on relaxing activities. The real life is much more expensive and challenging. When you start working, renting an apartment, you assume a huge responsibility. Make sure you have good money habits. Know your limitations. Calculate the amount of money you need to cover the bills. The rest of the costs, like food or transportation, could also use some roll-back in order to save a little for the future.
- Spending Above the Limit
Millennials need to learn how to prioritize their needs more than any other generation group. They say that they want to cut back on expenses, but still are treating themselves to guilty pleasures too often. Not depending on anyone financially is great. However, you must be safe with your financial freedom in order not to end up with a huge credit card bill. Donít go to the bad, starve for weeks or deny yourself of the devices you need for comfortable living.
- Not Saving Money
One of Freddy Mercuryís law of life stated that you should save money for the whole month and then spend it all on fun and leisure time. That could work if you are a star earning millions of dollars. The law of todayís ever-changing world is saving money for your future and building a retirement plan. Set a money goal that you want to achieve and invest in it. Even if itís just 50$ dollars every month, you will develop a beneficial money habit and have a necessary emergency fund.
- Not Having an Emergency Fund
Itís easy and fun to spend money when you are young. You may think that you will still have the time to settle down and get smart about money. However, bad things like diseases and injuries tend to happen when you least expect it. You may experience a lay-off at work and if you donít have some money stashed away for a rainy day, you have a really painful experience coming your way. An emergency fund isnít the same as savings. So, to be on the safe side, put away a sum of money every month until it reaches at least the sum of your three monthís salary.
- Not Learning About Investing and Personal Finance
That perfect image of you achieving financial success or living a rather well-to-do life will stay a dream if you donít start investing in yourself. You must do it now, when there are so many chances for you to grow mentally and financially, build a business, make your plans real, for that matter. Explore the science of self-investing in order to be clear about managing money and making money work for you.
- Not Investing
People who think that investing is risky just havenít found the right investment pattern yet. Putting money in the bank may feel safe, but eventually, the inflation will eat a good portion of it. There are plenty of resources available online for you to learn about investing. Certain services help choose the best company to put money into. Remember, that market has an upward trend in the long run and your money will grow best through the market.
- Not Getting Insurance
Itís never too early to think about insurance. Insurance is a safety net that everyone needs. Insurance isnít only for when you get sick. Since the insurance payments are lower when you are young, a moderate monthly payment can turn into a fund in the future. If you donít use the insurance money, you will able to fun your house or car expenses with it.
Helen Hepburn, content manager and writer for https://personalmoneyservice.com.
Article Submitted On: October 05, 2017