How to Make Better Financial Decisions As a Millennial
Mariko Urimoto, Financial Blogger, Philippines
04 August 2017
If you are a millennial, it’s safe to assume that you’re either relatively new to the workforce or have just started building your savings. At this point in your life, you have to master financial literacy in order to better prepare for the future.
With inflation shooting off the roof in the recent years, you need to be more careful about spending and saving your money.
If you want to learn how you can begin making better financial decisions for yourself, keep reading because we will be dishing out a few insightful tips that will help you live comfortably in the years to come.
Build Your Savings
Most of us, including your parents and their parents’ parents, only save what’s left of their salary after deducting all their expenses. If you want to consistently build on your savings, you have to stop treating it like an afterthought.
The rule of thumb is to treat your savings as a fixed expenditure and work it in within your budget. If there are adjustments you need to make, only your lifestyle expenses will be affected – which you can easily adjust.
Having enough savings to cover three months worth of your expenses is a great goal for beginners. From there, try becoming more selective about what you spend your money on and be more earnest in saving.
Compromising your savings “just this one time” will become a recurring thing if you don’t control yourself so be sure to practice discipline as early as now.
Change #TravelGoals to #LifeGoals
While it’s true that you should see as much of the world while you still can, traveling should only be done if you have enough money in the bank and in investments.
Going home flat broke after a weekend of fun out of town can fun to look back on but you’ll soon have to face the reality of rapidly mounting bills and credit card payments that are doing nothing for your credit standing
“Having enough savings to cover three months worth of your expenses is a great goal for beginners. From there, try becoming more selective about what you spend your money on and be more earnest in saving. ”
Don’t Be Afraid to Invest
It’s for certain you’ve heard one family member tell you you’re not ready to invest or you can’t really afford to commit to an investment. We’d like to debunk that myth right now.
The truth is, anybody who’s earning a consistent monthly income can invest. All it takes is discipline and commitment.
One of the best things you can invest on is your retirement. If you want to live a comfortable life in your olden days, you should begin investing on a life insurance plan as early as now. By setting aside a consistent amount of money on a monthly basis, you are safekeeping enough money for your retirement.
If you want to begin saving for a brighter and more comfortable life in the future, don’t hesitate to reach out to our professional life advisor. He can help you make better financial decisions that will set you up for life.