Life is difficult for millennials. Not only are they frequently frowned upon by the majority of the seniors, but they’re also pretty broke most of the time.
And how can they not be, when the cost of living has skyrocketed, and jobs just don’t pay enough? Let alone all the pressure to have the latest tech gadgets and fashion-forward attire to look stylish at all times. It’s no wonder they’re broke. They have expensive tastes and not enough cash to afford the lifestyle.
Whilst it’s easy to work out the reason why many millennials don’t have two pennies to rub together, at some point they need to take the responsible approach and listen to constructive criticism and advice, to help them along their challenging journey, and ultimately avoid the dreaded word – DEBT.
So, if this is you, instead of having your mum nag you about how to keep your finances in check, in order to save you the torture here a list of ways to help yourself avoid the millstone of debt.
Avoid Student Loans
Student loans, as great as they sound, are a long-term debt trap. If you are desperate to study, rather look into scholarships, grants or other ways of financial assistance. The interest rates on student loans are much higher than any other type of bank loan, and most students take years and years to repay them. You don’t want this type of payment hanging over your head because more often than not, banks refuse to decrease the monthly payments, even if you have a good reason for the asking for the reduction.
Get a Job
Even if it’s a freelance job, do something that brings in an income. It doesn’t have to be a job that you make a long-term career out of; it just needs to be something that’s sufficient and stable enough to support your expenses. Living off your parents is no way to live, and you’ll feel a whole lot better when you’re financially independent. Although jobs are difficult to find, there are many career-guidance organisations and recruitment agencies that take one’s skills into consideration. Write up a good CV, identify a great recruitment agency, and get on your way to financial freedom and independence!
Save some Cash for a Rainy Day
Save save save, as tedious as it sounds. We all know how difficult it is to save, most have us have trouble with money burning a hole in our pockets, but saving will literally save you when you find yourself in a sticky situation. Whether you save £10 during the month, or £1000, save something!
Reduce Credit Purchasing
At such a young age, one shouldn’t need a credit card. It’s a very dangerous route to take, and if you lack exceptional self-discipline, you’re going to have a hard time with debt. Credit cards have the word debt written all over them because the money just adds up when you’re not looking! So, if you’re able to purchase on credit, do so only when there is a huge need for it, and make a pact with yourself that you’ll only resort to this method of spending once every two months or less.
Make Use of Finance Apps
There are plenty of amazing apps, right at your fingertips, which can either help you to avoid debt, track your expenses, budget correctly or help you to save.
Check out apps such as Wally, Acorns, You Need a Budget or Mint, and take advantage of their super useful, user-friendly services. They help you make sound decisions such as what to invest in, how to go about ensuring your vehicle or house is not rejected for insurance, and so much more.
Be Honest with Yourself and Your Friends
Don’t feel bad to pass up a night out on the town, because you don’t have cash to blow. It may sound difficult to do, but it’ll take a lot of pressure off of you if you’re upfront and honest with the people around you. You also need to be honest with yourself and ask yourself where your priorities lie. It’s also important to realise that a fun night out will come around again and putting yourself in the debt seat, just for some socialising, is not the way to go.
Get Help from a Financial Advisor if You Need Further Advice
If you feel like you’re entering a downward spiral of bad decisions and see yourself getting caught up in a financial mess, talk to a professional who can offer you expert advice, when it comes to handling your money. It’s never too late to ask for help. At the end of the day, that’s their job, and they’ll be more than happy to assist. There is nothing wrong with a debt review, and it will help make planning for your financial future clearer.
As daunting as it all sounds, these are, in fact, the easiest ways to avoid debt and if you give these steps a try, you’ll realise it’s not all that difficult to manage your money. The trick is to make a habit out of good, responsible decisions so you can enjoy occasionally treat yourself to the things you enjoy without the guilt – and without taking months and years to pay for them.
Midlife mum from Cardiff. Wine Imbiber. Likes glitter, fluff and olives. Approaching tweendom with Caitlin (11) and Ieuan (10). The husband is hiding in the loft.
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