Whether you are a recent graduate or a younger individual who is looking to become more financially independent or are simply looking to make more money, there is a lot you can be doing when it comes to better managing your finances. While there are a great deal more opportunities to find your way out of tricky money situations than our parents or grandparents would have had (take for example short term loans etc.) it’s still important we become self-sufficient and better equipped to manage our finances without relying on emergency help from external sources. Of course some of the following tips you would be able to learn through a process of trial and error, but that is not to say that having a head start would not be beneficial and less costly too in the long run too!
Track your money and investments
Regardless of how much income you may have, it is important to always be able to track all aspects of your income, from account balances to savings and even investments (should you have any). Why not explore the most popular apps and smartphone features that will encourage you to take a closer look at where your money is going at all times.
Don’t wait around
Many millennials fall into the trap of waiting for their perfect job which means that they tend to wait around for a long time for their big break to come along. Keep in mind that a vast number of life’s opportunities come from personal connections which is why networking and thinking outside the box will make you better equipped to land the job- and salary- that you want.
Cut down on your expenses
It’s no surprise to learn that the price of houses are on the rise, which is why money management experts tend to suggest that you live rent-free for as long as possible to allow for faster buying opportunities in the future. Some things you can do in the meantime while you are saving up for your future home are to cut down on unnecessary expenses and this can be anything from food to commuting costs etc. Being more cautious with where your money is going will allow you to make small savings each month which will all come in handy when it comes to buying that dream house!
Commit to saving a chunk of your pay check
Getting into the habit of saving money if often the hardest first steps to make but once you have the skill mastered, better managing your money becomes a breeze. Through committing to consistently save between 20% and 25% of your pay check, you will soon be well on your way to building up a substantial reserve of cash for emergency situations and important future purchases.
Start investing as soon as possible
Lots of people are scared of investing money as they feel that they are not in the best position to do so until they have paid down their debts. Regardless of whether you are still in the process of paying off your student loan or any other debt, you should be looking towards backing an investment strategy that best resonates with your long term goals. Time is the greatest asset of any investment, so the earlier you get to investing, the better and more significant your gains will be.
Generic advice is not a service regulated by the Financial Conduct Authority.