Are you a young person who is constantly struggling with your personal finances? Do you find yourself making a good income and yet never seem to have enough money to pay your bills and save a bit for a better future? Do you wonder what the steps are to get to financial freedom at a young age, so you do not have to work until you are 70 just to retire comfortably?
If you answered yes to any of these questions, you are a typical millennial today. You are concerned about how you could be doing everything right, and yet you feel like you are slipping farther behind.
You can, however, become a millennial millionaire, but you will likely have to change some things about how you conduct yourself financially. Here are some tips.
Commit to Saving 25% of What You Earn
The way that most people become wealthy is the same for every age group. They accumulate money that they can then put to work for them to generate additional capital. This piles up and becomes a huge net worth.
So first you must start by setting aside a good percentage of what you are earning now. This means that you need to find a way to save around 25% of what you earn. This can then be put into a secure savings account so that it can be kept safe, accessible and gathering interest over time.
Now to make this work might mean that you will have to make what you will consider to be sacrifices. Most people believe that giving up anything they feel makes them comfortable is a sacrifice, but the reality is that most of us simply have too much and have falsely determined what we need to be comfortable.
£6 cups of coffee and £50 manicures are not critical purchases. Yes, you might have gotten used to these things, and joking that you ‘can’t live without them’, but you definitely can. If you want to be good with money, these are treats, not necessities.
The thing to keep in mind is that what you are spending now is not only the amount for the gym membership, it is also the amount you are losing on lost interest and profits from not investing that money. Over time that $500 can actually be costing you $10,000.
So bite the bullet and do away with 25% of your spending.
Learn How to Invest
There are many ways to become knowledgeable about how to invest your money. You can use the internet, take online courses and even speak with your local bank about how you can create consistent investment returns on your savings. Your investment options are broad; you can certainly find several ways that you can invest that will suit your needs.
You might prefer safe and stable investments like real estate or high potential, high-risk investments like growth stocks. The best path is to be more conservative and to spread your risk across investment choices. Educate yourself on the risks and listen to the experts on the best strategies.
Contrary to popular belief most millennial millionaires do not become rich from owning a tech company. They do it by following proven investment strategies and saving their money. The best way for you to become more financially stable is to have savings and your money working for you.