Money Management Basics for Millennials
February 2, 2021 | Peyton Sawyer
Millennials often get a bad rep for knowing money management basics. Baby boomers took one look at what millennials like to purchase and have decided that the base of all millennials’ money troubles lies with the infamous avocado toast.
If only millennials skipped the avocado toast at lunch, they’d be so much better off. Little makes our blood boil worse than remarks about the avocado toast. The truth we are saddled with more debt and have fewer chances of getting a pay raise than previous generations.
And no one has taught millennials how to deal the money management basics. We had to figure it out all on our own.
So here’s what we figured out – try these money management tips and you’ll see soon enough that achieving financial stability, while not easy – is pretty simple.
Money Management Basics to Achieving Financial Stability
1. Set Up a Budget
There’s no way around this – you need to track your spending to figure out where the money is going, and you need to put a cap on certain categories you’re overspending in.
It can be something as basic as groceries even – if you don’t have a grocery budget and you just grab whatever at the store, chances are some of it goes bad before you can utilize it. Not to mention the snacks. Snacks are the easiest thing to overspend on. In fact, snacks might just need a separate expense category in the budget.
2. Prioritize While Budgeting
The first thing you put money in the budget for should be the “unskippables” – these are the bills you’ll need to pay no matter what. Your rent, utilities, debt payments – and yes, savings – go into this category.
Yes, your savings – especially if you’ve yet to set up an emergency fund – this comes before everything else, especially the non-essentials. It’s all about knowing the money management basics. With that knowledge, you know the amount doesn’t need to be huge, you can work with an amount you’re sure won’t leave you eating beans and rice for the month. Just be sure to put it in the budget no matter what.
Then comes the second priority – the things that are your monthly expenses: groceries, gas, etc. And then come wants – snacks, takeout, beer with the guys, etc. – things you can live without if something happens.
3. Give Yourself Fun Money
Yes, you should budget for the “wants” category too. The state of constant deprivation isn’t the one anyone can stick to. It’s pretty much the reason why diets fail all the time.
The fun money should allow you to spend on things you want – but help “curb” the impulsive buying and overspending. When you only have limited funds to work with and you are learning money management basics, you should think twice about purchasing anything – yes, you could buy a coffee now, but do you really need to? If you do – you’ll have less fun money. (Yes, sometimes we really do need coffee. But other times it could be skipped. The fun money category helps us figure out when that is).
4. Put Your Spending Under A Microscope
And by that, we mean that you should take a careful look at your bank statements and figure out which expenses could be cut and which could be less.
- Cut the subscription services and memberships you don’t use.
- Try to quit smoking and cut down on alcohol. If you smoke half a pack a day (and most smokers smoke more) – you’re spending upwards of $100 on cigarettes each month.
- Use your library – not only do they have free books, but also free movies, free internet, and multiple services. Figure out where they can help.
- Negotiate your bills – there are even apps that will help you figure out which bills you could be paying less. Try Trim or Clarity Money.
5. Know When It’s Okay to Spend
Money, in the end, is made for spending. That’s what the emergency fund is for, in the end – if you’re hit by an emergency, you should dig into it and spend the money.
In case your emergency fund isn’t set up yet – you should think about getting the cash together from other avenues. In the worst-case scenario – unplanned pet surgery, doctor’s visit, an emergency call to a plumber – it’s even okay to take on additional debt. Something like this will cost you more if you postpone, then a short-term fast loan, like a payday loan, will.
What Makes Payday Loans Good for Emergencies?
- They’re fast. You’ll be getting the money the same day.
- They’re easy to take out: the lenders will accommodate all types of incomes and they don’t pay attention to credit scores, so you can apply if your credit score is bad – or non-existent altogether.
- They’re only a few hundred dollars max, which makes it hard to take out more than you’ll be needing – which can be tempting when other loans are considered.
- The application process is quick and simple.
How Do I Take Out Payday Loans?
You can apply for online payday loans by going to CashCowLouisiana.com and fill out the form on the website. Send it to the location you want and wait for the store representative to give you a call. You’ll need:
- Your government-issued ID (you must be at least 18)
- Your most recent pay stub
- A blank check from an active checking account in your name
The store representative will walk you through the rest of the process, and if you’re approved – you’ll get the cash. The entire process takes on average 30 minutes.
As millennials, achieving financial stability isn’t always easy, but with just a few money management basics you can be on your way to a better financial future. Take a moment to go over the tips listed above, but if you need immediate cash try the help of a fast cash payday loan from a trusted source in Louisiana; Cash Cow Louisiana.