Saturday, July 20

The Millennial’s Guide To Financial Planning

Our generation is referred to as one of entitlement. It is believed that we lounge around wearing fun hats and quirky facial hair, just waiting for the world to bestow its bounty upon us. We aren’t saying that this is impossible, just that we don’t know anyone living this comfortable life of whimsical bliss. Even though you will need to focus your energy on building a career, you will also need to uncover professional financial planning skills to make it in the forever struggling economy.

We are grinding longer for less, fighting harder for opportunities amidst far steeper competition. While it is a great idea to get on board with the popular and profitable crypto-craze by getting a good bitcoin wallet, financial stability requires more than lucrative investing. What you need are the key pillars of financial planning to get you started on the right track.

Pay Off Debts Efficiently 

So this one is a double-edged sword. The longer it takes for you to pay off your debt, the more you end up paying on interest. Unfortunately, there is a messed up little sub-clause in most credit agreements. Should you try to pay more significant amounts than your set monthly installments, you are liable to face a penalty. 

What can you do about it then? One will most likely feel trapped by the arrangement and think it best to follow the set terms. This is what ends up costing you that full percentage value of interest per annum. Enquire about a settlement amount, and then work to save for a single payment while still honoring erstwhile installments.

Start Saving Now For Retirement

This is an aspect of our financial future that should terrify us. We are the first generation who will grow old after the third industrial revolution. There is no precedent set for what that world might be like and what we can expect retirement to cost. Even if you make good money and have a basic pension plan, it is still no measure of certainty.

We know it doesn’t necessarily sit well at first, the idea of saving your current income for later years. It does feel as though there should be some agency with which we can take matters into our own hands and generate more capital by investing actively. The reality does fall on a compromise. Build up assets, invest, but all the while keeping a share of savings invested for the sole purpose of retirement.

Stay In Touch With The Grander Scale Of Things

Depending on your line of work or study, it is likely that people of a similar mentality will surround you. This is brilliant for focussing your ideas and building strong friendships. All too often, one ends up creating a secluded mental space, detached from what’s happening in the financial world, and this is a real problem.

Socio-economics and geopolitical affairs are particularly critical. These subjects tend to be a source of intense personal opinion for many of us. Still, one must take a step back and stay on top of how changes on the global stage impact markets, financial sectors, and even specific industries. It is not a guaranteed way of future-proofing, but with your thumb, on the pulse, you can make informed decisions. 

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