A click happy, tech savvy generation that believes in living for today and eschews long-term commitment for immediate gratification. These are the millennials, more commonly known as Generation Y. While it is unfair to paint an entire generation with the same brush, we would not be amiss in saying that millennials have a tendency to delay decisions related to careers, investments and savings. Consequently, they tend to adopt a somewhat myopic view and fail to make long-term investments. However, for long-term stability and well-being, millennials should consider crafting out their long term goals and working towards achieving the same.
Below are some essential money management skills that millennials should strive to adopt in order to get on the path of financial security.
Some people have a steady salary from time they join the workforce, while others have a more erratic cash flow. Whichever bracket you might fall into it is important that you start saving a portion of your income at the earliest.
When you set out on a journey it is important to have a destination and a path chalked out. Else, you are pretty much heading to nowhere. Similarly, when you start your investment journey, ensure that you have a steady long-term investment plan and that you stick to it through the ups and downs of the investment landscape.
Technology has made investing process simpler and nowadays it will only take a couple of clicks from your mobile application to open a mutual fund account or invest in it. If you want to go the SIP route for your mutual fund, you just need to confirm your regular investment amount and the day of the month only once. For example: if you decide to invest Rs 1,000 on the fifth day of every month, you just enter these details in the mutual fund application and the amount will be invested directly from your bank account every month.
Discipline is important in every sphere of our lives. It is only with discipline and commitment that we can achieve the things that we want to in our lives. First and foremost, live within your means and don’t spend more than you can afford to. Secondly, makes savings a habit and ensure that you save and invest at least a fraction of your monthly earnings.
Life can be uncertain and throw all sorts of exigencies at us. In addition to the savings that you do in order to achieve your financial goals, it is imperative that you create a separate investment fund that can cater to unforeseen circumstances or emergencies.
It is great to live in the moment and enjoy life to the fullest. However, in order to truly enjoy life to the fullest you have to be prepared for your tomorrow.