In this day and age, millennials are used to experiencing things in an instant. However, this cannot be the same for finances and handling money in general. In order to achieve financial stability, you would have to work hard in this dog-eat-dog world and that would be a tough task to muster.
In the Philippines, personal financing is hard to come by because of the many factors that you should keep in mind when handling money. Suddenly, bills and other payments would haunt your paycheck until it has become a ghost by itself. As a millennial, there is also that matter of having to maintain a lifestyle that will keep you physically, mentally, and socially fit to be a functioning member of society.
If you are wondering how you can balance all those with being a master of personal financing in the Philippines or even all around the globe, then check out these tips that you can follow the next time you find yourself worried about it:
Think of Long-Term Goals
It would be hard to think about the future at such a young age. You would be enjoying your independence and the ability too much to think about retirement now but it is important to take this consideration seriously.
Social security is changing and you should not shy away from the responsibility of handling this matter. Although it may be tempting to get the trendiest gadgets or to go out of the whim and jet set across the world, this would not be suitable if you want to be financially comfortable in the long run.
Instead of all this quick relief and escape, you should consider putting in a portion of your money into worthwhile investments and see the rewards it will give to you. Talk to a financial adviser who can help you in handling your money and deciding where you can invest it to. This way, you can set yourself up for early retirement and you can access your hard-earned money whenever you want.
Make a Budget
Once in a while, you will find yourself exclaiming that you are too “broke”, and as a millennial there are many things that contributes to this problem. Since college, you would find yourself entangled in finances for your textbooks, project, or any other social activities on a limited income. Professional millennials also find themselves in the same financial turmoil and there are times when they feel like they are unable to relinquish control.
Making a budget will allow you to regain organization when it comes to your personal finances. Keeping track of your money helps you in knowing where it goes and you can know how much you have left over if you run into emergency spending. Budgeting will become a natural habit, and if you find yourself committing to it then you would find that it is actually quite easy.
The first step to making a budget is to monitor your spending, and then you can tailor-fit your lifestyle with the income that you have. From food, essentials to other spontaneous spending, you can determine your saving and spending habits to your income.
This should be a priority for most millennials and not just an afterthought. Having an emergency fund will benefit you for the long-run and this can help with unexpected expenses regarding medical or accidental emergencies. This can also keep you in the right track if you have a goal you want to achieve.
Planning to buy a car or a house? Then start small by saving up a portion of your income. This way, you will be motivated to add up to how much you are saving. There are opportunities that presents itself wherein you are tempted to spend aggressively but if you are planning to keep your saving secure then you should restrain yourself.
It is also important that you save yourself from any debts which may endanger your finances. Master your budget so this way you don’t live from paycheck to paycheck. Take the time to start budgeting today and with no excuses.
Everyone needs a guide in handling money whether you are a millennial or not but it is important that you can also be mindful of your expenses. This way, you can achieve short and long term goals to make your money work for you.