Maintaining a healthy financial status is hard enough for the majority of people, but for a generation that’s struggling with their money, this becomes an even trickier task. Millennials are constantly being ridiculed for carelessness with their money, but not all young people are spending their wages on avocado toast. Many young people are struggling to purchase their first home and save for a good financial future, which is why a good knowledge of money management is vital. Here are a few tips to help millennials meet their financial goals.
Open an ISA Account
Having a savings account is so important for anyone trying to get better control of their finances. Make sure you open up a cash ISA savings account, which gains interest on the money you’re saving. There are a number of different ISA accounts to choose from depending on what you want to get out of your savings. For instance, a ‘help to buy ISA’ is a perfect way to save money for your first home. With this, you can save up to £200 (18,080 Rupees) a month and then once you’ve saved a total of at least £1,600 (144642 Rupees), you can claim help to buy bonus of £400 (36,160 Rupees) — the government’s minimum bonus amount. The maximum bonus you can receive from the government is £3,000 (2, 71,204 Rupees), for which you’ll need to have saved a total of £12,000 (10, 84,816 Rupees).
Investing might sound like a scary idea for young people, but it’s one of the best ways to really boost your income as a whole. Micro-investing is something that’s popular with millennials, with a number of apps that help you invest without any hassle. Apps such as Money Box allow you to round up your daily purchases to the nearest pound, and then invest the spare change, giving inexperienced investors a good introduction to the world of investments. If you want to make larger returns on your investment, buy to let property investment is a great option. Although property investment might not be something you’re able to do right now, it’s a good goal to keep in mind once you become more financially stable, with many UK cities offering the potential for fantastic returns. If you do decide to invest in property, be sure to choose a trusted company such as RW Invest, who offer opportunities in the UK with some of the highest rental yields, levels of demand and capital growth potential.
Get Serious With Budgeting
In order to have money to save, you’ll need to think about ways to cut down your monthly spending. Set a realistic budget for you to stick to, taking into account things like your food shopping, travel costs, and any additional costs such as socializing. Try and limit yourself the number of pricey luxuries you spend money on — that daily latte might be good for your afternoon slump, but it’s bad for your purse strings! Looking at how other people spend their money can be a good way to put things into perspective and work out your own budget. Refinery29 publish weekly ‘money diaries’ where young people track their weekly spending, with details on their monthly income, bills, and other outgoings.