Are you a young
person who is constantly struggling with your personal finances? Do you find
yourself making a good income and yet never seem to have enough money to pay
your bills and save a bit for a better future? Do you wonder what the steps are
to get to financial freedom at a young age,
so you do not have to work until you are 70 just to retire comfortably?
If you answered
yes to any of these questions, you are a typical millennial today. You are
concerned about how you could be doing everything right, and yet you feel like
you are slipping farther behind.
You can, however,
become a millennial millionaire, but you will likely have to change some things
about how you conduct yourself financially. Here are some tips.
Commit to Saving 25% of What You Earn
The way that most
people become wealthy is the same for every age group. They accumulate money
that they can then put to work for them to generate additional capital. This
piles up and becomes a huge net worth.
So first you must
start by setting aside a good percentage of what you are earning now. This
means that you need to find a way to save around 25% of what you earn. This can
then be put into a secure savings account so that it can
be kept safe, accessible and gathering interest over time.
Now to make this
work might mean that you will have to make what you will consider to be
sacrifices. Most people believe that giving up anything they feel makes
them comfortable is a sacrifice, but the reality is that most of us simply have
too much and have falsely determined what we need to be comfortable.
£6 cups of coffee
and £50 manicures are not critical purchases. Yes, you might have gotten used to
these things, and joking that you ‘can’t live without them’, but you definitely
can. If you want to be good with money, these are treats, not necessities.
The thing to keep
in mind is that what you are spending now is not only the amount for the gym
membership, it is also the amount you are losing on lost interest and profits
from not investing that money. Over time that $500 can actually be costing you
$10,000.
So bite the
bullet and do away with 25% of your spending.
Learn How to
Invest
There are many
ways to become knowledgeable about how to invest your money. You can use the
internet, take online courses and even speak with your local bank about how you
can create consistent investment returns on your savings. Your investment options are broad; you can
certainly find several ways that you can invest that will suit your needs.
You might prefer
safe and stable investments like real estate or high potential, high-risk
investments like growth stocks. The best path is to be more conservative and to
spread your risk across investment choices. Educate yourself on the risks and
listen to the experts on the best strategies.
Contrary to
popular belief most millennial millionaires do not become
rich from owning a tech company. They do it by following proven investment
strategies and saving their money. The best way for you to become more financially
stable is to have savings and your money working for you.
