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According to several studies, millennials are struggling to save money compared to previous generations. Naturally, that could lead to financial issues later on in life and is something that should be addressed.
Fortunately, it’s not too late to start planning your future finances. In fact, it’s never too late to take control of your finances, but the sooner you do it, the better it will serve you.
In the following post, I’m sharing some easy tips and advice that can help you get started with your financial planning already today, especially if you’re looking to start investing.
Set Your Goals
The number one thing you have to do to get started with your own personal financial planning is to set your goals and intentions. What are you planning for? Do you want to save for retirement, are you looking to buy a house, interested in long-term investments?
Without goals, it’s difficult to start planning so make sure you take your time with this one. Although, don’t be too specific and don’t set goals that are impossible to reach.
For example, if you want to start saving for retirement, start an account today and create a budget to figure out how much you can set aside every month. As soon as you’ve got a hold of that, you can start increasing your budget and figure out new ways to save more.
If you’re looking to buy a house, you should start by looking into how much you will need, what the bank’s mortgage requirements are, etc. One great way is to reach out to your bank or contact a realtor.
If you, on the other hand, are looking to start investing, you should educate yourself on how investments work, what securities that suit you best, and which brokers you can trust with your money.
A good place to start is Bullmarketz.com, a free and extensive investment and trading resource with tons of great advice for beginners.
Don’t Be Afraid to Ask for Help
I can’t tell you how important it is to ask for help when needed. It’s almost impossible to learn everything you need to know about saving money and investing on your own and there is nothing wrong with getting some help.
Some might even argue that finding a good mentor can be one of the smartest decisions of your life.
Do you know somebody that is already investing and saving money? Then ask them for help. Otherwise, turn to your bank or ask a professional financial advisor for some support.
Invest Where You Have Knowledge
In case you’re planning to invest – which I recommend you do – it’s important to pick investments that you have an interest in and preferably previous knowledge about.
As a millennial, chances are that you know more about technology than your parents and then investments in tech stocks make a lot of sense. The same goes if you’re working in a certain industry or a specific field – try to keep your investments there.
Another good investment tip for millennials is to consider cryptocurrencies. Regardless of what you think of the concept, we can all agree that they are here to stay and that they will help shape our future. So why not invest in them now, before it’s too late?
Millennial Investors Should Always Diversify
My last tip is probably the most important and it can be applied to all sorts of financial planning.
Whatever you’re looking to do, whether it’s saving 100 dollars a month or placing a few thousand dollars in stocks, you have to start small. It’s never a good idea to risk it all at first, and I recommend that you increase your savings or investments gradually.
Furthermore, diversification is an absolute must. You should never put all your eggs in one basket, especially not when it comes to finances.
It’s never been a better time to start planning for your financial future, so stop procrastinating and start now. Just remember to either focus on what you already know and if you don’t feel like you know enough, don’t hesitate to ask for help.
Finally, don’t forget to start small and diversify, and that’s important regardless of what your goals are.
I’ve done all the things! Girl, I’ve washed my face. I’ve trashed everything that doesn’t spark joy. I’ve walked the baby steps. I’ve cried. I’ve prayed, but my perfectionism has really held me back.
Perfection Hangover can be crippling. Stop comparing yourself to others and start living your best life! That’s why PH exists! I want to encourage you to take control of your money, your blog, and your business.