How Millennials Can Survive These Financial Nightmares
Millennials, also referred to as Gen Y, are living the prime years of their life. With ages ranging from the early 20s to early 40s, millennials are now well into a crucial life stage – adulthood. This is usually the time when one begins to learn how to strike a balance between their sense of independence and the responsibilities they have to face.
When it comes to money matters, Filipino millennials are just like any responsible adult. They want to be knowledgeable about their finances. Millennials also know that money issues can be a scary subject. But, with proper control of money, they can be empowered to handle this aspect well.
Still, facing financial challenges is part of adulthood that millennials should prepare for. In this post, we identify common financial nightmares and share tips to help you survive them.
1. No Financial Knowledge or Wisdom
Finance can be a complex topic, something that you might not be able to master easily. It might take time before you realize that you need to allocate some of your money into investments. When that time comes, you’re unable to decide whether to go into stocks, insurance or the latest investment hype. If you have an entrepreneurial spirit, you might also lack the confidence to go full swing with your business venture because you’re afraid of the risks involved.
To improve your financial literacy, you could get yourself involved in a personal finance course. Some companies offer seminars and training to help you learn the ins and outs of financial management and investment.
If you’re not yet ready for a professional course, you could do some self-study online. Start reading through blogs of financial gurus who run a series of posts, from best practices in saving money to choosing an investment product and preparing for retirement.
2. Financial Fragility
There are telltale signs for you to determine whether you’re financially fragile or not. Living paycheck to paycheck, regularly charging your expenses to your credit card, taking out loans one after the other – all of these indicate that you’re not doing so well in managing your finances.
Ideally, you should have a personal emergency fund that’s worth three to six months of your salary. Having a savings fund gives you more room to cope with unexpected expenses. With a savings and emergency fund, you don’t have to resort to using your credit card more than you should. Just make sure that you return whatever amount you draw from your emergency fund, once you get back on your feet, so it’s kept intact.
3. Stagnant Earnings
At this time, the bulk of your income may be coming from your employment. This can be a challenge, especially if your salary is not competitive enough to cover all your expenses.
In such a case, you have the option of asking your manager for a raise. While it’s not common Filipino culture to openly ask for a higher salary at work, you could aim for a promotion, which will automatically increase your base pay.
Alternatively, you could look for freelance work to complement your main job and augment your income. You could also apply for a new job that’s willing to give you a better compensation package.
4. Never-ending BILLS
Bills and utilities can take a huge chunk of your budget. The effects of not paying your bills on time are even worse. You get charged with penalties and other service fees, which could cause a further dent in your finances.
If you notice that your bills are piling up cycle after cycle, it might be time to forego some of the services that you don’t really need. Perhaps you could pay for only one subscription instead of keeping all of your internet, cable, and Netflix accounts. Remember, a little frugality can go a long way.
5. Debts, Debts, and More Debts
Very few people are 100% free from debt. Many of us are forced to take out loans due to emergency situations or lack of financial resources. Nowadays, online loans are becoming a popular option for many people because they have a short processing time, with the application process all done online.
Although you’d like to avoid being in debt, you could be smart about the loan packages that you choose. That said, you should take time to look for loan providers that have the lowest interest rates.
With Cashalo, you can get a loan with low fixed monthly interest rates. Cashalo also offers utmost convenience in online loans, allowing you to apply with just one (1) valid ID.
6. Creating a Budget That Actually Works for You
Budget planning – and sticking to it – can be a challenge for anyone. Without a good and reasonable budget in place, you might end up spending more than you can afford or worse, more than what you’re earning.
Nowadays, there’s no shortage of budgeting tools and methods that you could use. Look for a budgeting app or resource that’s customizable to your own needs. Use it every day, so you could see where you’re spending the most of your money. Then, try to cut your spending in that area.
7. Rise of Housing / Rental Costs
The cost of buying or renting a house shoot up year after year, which could affect your goals toward financial stability. Overcoming this challenge is possible. Either you stay with your parents until you have more financial freedom to live on your own or you could rent an apartment in a cheaper area for the time being.
8. Don’t Let Financial Nightmares Haunt You
Money problems are as ugly as your worst nightmare. However, there are things you could do to keep them from haunting you. Apart from budgeting and saving your money, getting an online loan can help you get by financially.
Break free from your financial slump! Get the extra money you need from Cashalo today.