With average rent prices going up and salaries remaining stagnant, it’s easy for Millennials to think that financial planning is simply a pipe dream. However, despite the abundance of economic hurdles, there are still clever ways for Millennials to invest in the future without overly taxing their wallets.
From innovative tech solutions to a bit of good, old-fashioned budgeting, developing a stronger financial portfolio is more accessible than many would assume.
Leveraging digital solutions.
If you have access to a smartphone and are looking to get more serious about financial planning, it’s as simple as turning to your app store. Lately, there’s been a surge of applications and services that are dedicated to smart investing and boosting returns. For the tech-savvy, there are apps such as Robinhood that facilitate low-risk crypto and digital currency exchanges without needing to navigate a complicated exchange market or even fully grasp the concept of the blockchain.
Tired of seeing uneven numbers in your bank account? Acorns, a popular investment application, has a suave solution. Instead of wondering about the “spare change” on all your credit card purchases, Acorns allows you to round up. Say you stop by a convenience store and your total comes out to $4.85. With apps like Acorns, that $4.85 automatically processes as a $5.00 purchase and invests the remaining change into a diverse portfolio. You can also set recurring monthly contributions and choose to multiply your roundup for even greater dividends. An added plus: They forecast your growth potential, allowing you to see how your investments could mature.
Condense your monthly payments.
In this day and age, there seems to be a service for just about everything. From companies like Birchbox which send cosmetic samples on a monthly basis to recurring memberships which might not get that much use, it’s easy to get sucked into the “low monthly fee, high annual payment” trap. Sure, you might enjoy spending time at the gym on personal training, but do you really need to fork over a fifth of your paycheck for it?
While many monthly services seem like they’re well worth your investment, it’s important to leverage your cost versus usage. If you’re not feeling as though you’re getting your money’s worth, axe it. Sure, you may be eagerly anticipating the final season of the latest hit show, but if that’s all your Netflix membership is worth, you may want to reconsider the monthly payment, especially given their ever-increasing prices. Though that extra 12 bucks a month might not seem all that impactful, it adds up.
Likewise, it’s important to weigh out all monthly expenses including rent, utilities, and even your car. Be sure to plan your budget accordingly before a visit to your favourite car dealership in Manchester, CT or any other town. Knowing how much money you can spend before going to the dealership will help you determine the best car option for your financial situation, allowing you to save as much money as possible.
Explore workplace options.
For many individuals, opting into a 401k plan seems a touch unreasonable, but ultimately, it can be worth it even if your current career path doesn’t seem like a long-term placement. In many cases, even if you don’t think of a 401k as a consistent option, it can easily be rolled over into an IRA account. That way, you’re able to leverage employer match easily without feeling as though that investment is going to waste. As for your paycheck, the added deduction isn’t noticeable for the most part.
Nowadays, financial planning isn’t as simple as having a dedicated savings account. It requires more thought, insight, and preparation. Plus, with a wealth of options available to Millennials, it can be easy to get a bit overwhelmed. Luckily, with a bit of planning, research, and prior knowledge, modern financial planning doesn’t have to be as inaccessible as it once seemed.