As millennials begin to enter the workforce, it’s crucial that they understand how to manage their finances effectively. In this post, our financial advisor Nick will explore three key factors that every millennial needs to know about money. From investing wisely to avoiding debt traps, we’ll offer practical tips to help you build a strong financial future.
Others will be more than happy to spend your money
Speaking as a Millennial, I know all too well that there is no Hallmark card to convey “Best of luck when you move away, but this going away party & night out in another county is too rich for my budget”, because it feels tremendously rude to turn down such invites. The early twenties to early thirties seems like a never-ending cycle of birthday parties, going away parties, bridal showers, hen nights, stag nights, baby showers, weddings, boozy brunches, liquid lunches and so on, but all these ‘must-go to’ events take a serious toll on your bank account.
So what’s the secret? Other people are more than happy to spend your hard-earned money for you!
It may happen to be your brother or sister’s or even your best friend’s big day that will only happen once in your lifetime, but unfortunately, it’s a day that will happen over and over again. Being part of weddings and going away parties can become a serious threat to your bank account over time, which in turn will lead to borrowing more, using that godforsaken credit card or just simply ignoring the problem until it creeps up on you down the line.
The moral of the story is DON’T DO THE LATTER!
All those lattes, mochas and iced coffees really do add up!
As a lover of anything coffee-related, I’ve learned first-hand the damage it can do to my purse. You may think to yourself, how on earth could a few coffees here and there ‘do damage to your purse’, but believe me, all those early morning coffee runs really do add up! However, it is not entirely the coffee itself that invokes the madness of personal finance experts. It’s the actual routine of senseless spending.
So how can we as Millennials quit mindless spending? It’s simple really, all we have to do is budget. Don’t worry, you can still have the occasional coffee here and there when factored into your weekly or monthly budget. Just remember that it is vital to know your cash flow at all times.
Saving is important but negotiating is crucial
It is critical that Millennials understand the importance of having the ability to negotiate. Having the ability to negotiate can have a significant impact on a person’s earnings. Some believe that people with weak negotiation skills could end up losing out on hundreds of thousands of euros over the duration of their careers.
But let’s just pause for a minute, you don’t have to walk into your boss’s office for your annual review and demand more money. Perhaps start off by negotiating a lower price on your next holiday with the travel agent or asking for a better deal with the Sky Sports guy. All these little practices and experiences will enable you to handle rejection but will also teach you how to counter in a negotiation.