Financial Management Tips Every Millennial Should Know:

Millennials are often talked about in terms of their lifestyle, trait and attitude towards life distinctly different from their parents and previous generations. Born in an information age and a tech-driven world, millennials look at careers, personal milestones and life through a different lens. While entrepreneurial spirit, individuality and risk-taking ability differentiate millennials, it is important for everyone to plan for the future. Planning finances, investing for the long term and saving for retirement remain universal goals. Let us look at a few financial tips for Gen Z!

  1. Manage Expenses: Born in a liberalised economy amidst a private sector boom, millennials have seen high paying jobs, opportunities and a consumption-led lifestyle. But these also mean uncertainty and vulnerability due to adverse economic cycles. Hence, it is important to draw a budget and manage expenses. Covid has taught us an important lesson, to learn to live with uncertainty but have a solid plan to manage it. With a well-planned budget, you can monitor and control your expenses and put money away in the savings bank right from the beginning.


  1. Investment habit: For a fit body, one needs to exercise every day from an early age. Similarly, to build good financial fitness, one needs to not just save but invest regularly. Young professionals often postpone investing for later years, but it is prudent to start early and benefit from the principle of compounding. There are online resources where a beginner can set up investments at the click of a button.


  1. Equity: Equity investments require a long term horizon and risk appetite. Plan and invest early in equity mutual funds. A systematic investment plan is a great tool to automate investments in stock markets. The process is entirely online and easy.


  1. Emergency Fund: Covid showed us how an emergency could shake up a stable life, job and health. It is important to keep six months to one year of monthly expenses aside in a fixed deposit or liquid fund so that you can manage your finances even if there is a sudden job loss or emergency.


  1. Life and Health Insurance: As optimistic beings, we do not like to imagine falling prey to disease or loss of life. Yet, life is unpredictable, and one needs to plan for all situations. Buy adequate life cover that covers your monthly income to your dependents in case of any eventuality.

Similarly, buy adequate personal health cover for yourself and your dependents so that an unforeseen medical expense doesn’t set you bank financially. A personal loan comes in handy in such situations, as personal loans can be availed online as well and sanctioned within hours on the basis of your loan eligibility. A personal loan can be repaid in part or full.


  1. Milestones: We earn so we can enjoy our life, and why not? Travelling the world, buying a dream car, taking up a professional course abroad, could all be personal milestones for people. You need not wait for years to achieve these. Set aside a fixed amount every month towards these goals. You can avail of a personal loan and repay it from the kitty you set aside in a disciplined way. A personal loan solves the problem of upfront payment without dipping into your investments.


  1. Debt: Managing debt responsibly will not only give you peace of mind but also ensure a good credit rating. It is easy to run up a huge credit card bill or overdraft but do you know credit card loans are expensive? Avail a personal loan that comes at much lower interest rates and can be paid in easy monthly instalments. You can get better personal loan interest rates if your credit score is good. The personal loan eligibility depends on your income and employment history. It is important to repay the loan on time without any defaults.


Planning and discipline in managing your finances, investments and debt early on can set a foundation for a stable life where you can take risks, follow your heart and work not just for money but to fulfil your dreams and purpose. 

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