Millennials’ Guide to Managing Finances
We have all grown up listening to our elders about the need to be thrifty when it comes to handling finances. Most of us are guilty of overspending money and upsetting our monthly budget.
In this article, we aim to provide best financial planning tips that will be helpful for one and all, particularly youngsters.
Kids of the last decade of the 20th century, who have just stepped into adulthood, are often referred to as Millenials. Youngsters of today’s age have all the comforts that technology offers. They juggle work and home, pay their bills while on the go, and are clear about their aspirations and life goals. However, when it comes to managing their finances, they often find it challenging to make the best decisions that come easily for someone who is experienced.
So, here are 4 financial tips for Millennial:
Set a Budget and Invest Wisely
Having a clear understanding of one’s financial situation and setting a budget greatly helps. A little discipline goes a long way. It is better to be systematic when it comes to managing finances. Creating a personal budget that gives a clear picture of your income and expenditures would be one of the best financial tips for millennials to follow.
It will also help one to ensure savings that can be achieved by choosing a good investment option. To begin with, you can start saving money in a Bank Fixed Deposit, which is the safest option. Young professionals can also consider Public Provident Fund as there are no risks as compared to other options such as investment in the stock market.
Keep a check on Debt
Do not let the burden of debt, like credit card bills and repayment of loans, affect you in any way. The interest rates for short-term loans such as personal loans and credit cards are often high. While at the start of one’s career, it could be difficult to handle debt repayments.
Thus, it is essential for young professionals to manage their finances effectively. Financial planning for millennials also means timely payment of loan, which is necessary for a good credit score.
Secure Your Health
It is not just the elderly who face health risks. Youngsters are also prone to diseases mainly due to lifestyle factors. While racing against time, they tend to overlook their health. Stress, irregular eating habits, sedentary routine, etc. increase the risk of ailments such as diabetes and hypertension.
Medical emergencies are unpredictable; that is why it is essential to be financially prepared. A health insurance policy is the best investment to make.
Think about Retirement
Do not be led into thinking that financial planning for retirement is for those who are nearing their retirement age. When it comes to planning for a comfortable and secure retired life, the earlier, the better it is. Nowadays, there are a plethora of schemes that help you build your savings for retirement.
It is essential to develop the habit of saving, and it is easier to save money when a person is younger. When planning for retirement, it is advisable to consider factors like cost of living, the inflation rate, and one’s estimated expenses.
Follow the above financial planning tips to ensure financial security and minimise the chances of any financial problems.
Make sure you safeguard your finances against unexpected medical expenses. Opt for a personal health insurance policy from Care Health Insurance (Formerly Religare Health Insurance), and avail numerous benefits, including no claim bonus for spending a claim-free year.