While millennials may face greater financial challenges than other generations before them as mentioned in Forbes, managing personal finance is still possible by regulating what is within control – spending.
For starters, CEO of WealthUp, Qiuyan Tian, advised: “Figure out what your mental and emotional balance is. Then you’ll start making objective decisions.” On that note, it’s also wise to improve your financial literacy to make more informed decisions.
As a child, you can observe how the adults manage their money, take the financial advice of one’s parents or even question their financial choices. Practice your money management by budgeting your allowance. The small framework you construct for the spending of recess money translates to a good foundation for your income budgeting in the future.
Additionally, overcome the perceived sense of spending entitlement that comes with our first paycheck, and the glamour that follows spending on brands and even more brands. Learn to distinguish wants from needs, dispel brand loyalty, and spend within our means or reduce expenses. For example, buy your groceries and cook your own food, instead of eating out! It’s not only healthier, but cheaper; you’ll be killing two birds with one stone.
Educate yourself to make correct investments and yield greater returns in the long run. For example, invest in corporate bonds and money market funds for low-risk high returns.
As Erin Lowry, author of Broke Millennial once said: “Don’t let your spending prevent you from doing what you want with your life. Rather, let frugality sculpt the life you crave.”