I was born in the early 90’s, so I am a millennial by every definition in the book. But, I don’t identify with many of the negative stereotypes that are associated with millennials in the media.
Compulsions to spend.
I suspect a large number of you feel the same way and have embraced the path towards financial freedom. Millennials are given the short end of the stick, dealing with an incredible amount of consumer and student debt, while facing an uncertain future as we are nearing a decade of one of the strongest bull markets seen in American history.
We are all looking to take extra steps and precautions to get just that much closer to our financial goals. Here are my top financial tips for millennials.
Best Financial Tips for Millennials
- Define and write out your own life principles. There is power in writing out your own thoughts and beliefs in paper. It takes the abstract and puts your intentions into physical form. The best financial philosophies are built from one’s own personal life principles. Some people want to buy luxury cars. Some people want to disappear and backpack the world. There’s no wrong answer when it comes to personal finance. Determine what makes you personally feel the most fulfilled in life and go from there.
- Always, always pay yourself first. A pre-determined cut of all of your paychecks should already be allocated directly into a savings and investing account. You can’t be tempted to spend what you technically never could.
- Learn how to deal with FOMO and the power of saying no. There’s no shame in not wanting to partake in every weekend outing. Learn how to enjoy your company and find your own little joys in life. Your mind will thank you and so will your wallet.
- My dad always said there’s something to learn from everyone, even if it’s learning how not to do something. Take a mental step back today and see all the processes that occur in your life that you never noticed before. The janitor and a venture capitalist both know something you don’t know. Don’t limit your library of knowledge. This will help advance both your career and life more swiftly.
- Attack daily, but think in decades. Where do you want to be in life a decade from now? Make sure to set intentions everyday and move towards those goals. We all have setbacks, but every step is towards the bigger picture. After all, Rome wasn’t built in a day.
- Education and the corporate ladder aren’t the only ways to success. I would argue they are not necessarily the best either. There have been extremely successful people that graduated from Harvard and extremely successful people who did not even graduate from high school (just take a look at Richard Branson).
- When you receive a raise, elevate your savings and investments as opposed to your standard of living. It’s important to really get started as early as possible, so compound interest can have time to work its magic.
- Recognize that the hedonistic treadmill is a real concept. You will adapt to all the shiny new toys you buy. Before any major purchase, I give myself some time and ask myself if this will improve the quality of my life vs. the cost. If the answer is yes, then I will spend guilt-free. But, I try to keep things simple and derive as much joy as I can from all the little things in life. There will be time to spend money later in life. It will feel much better to be investing towards your wealth right now.
What Are Your Thoughts?
These are all my thoughts based on my own personal experience. We all have our own different experiences and beliefs colored from what we have seen. I’m curious to hear how you go about your personal finance journey and if there’s anything you do differently.