Financial planning is an important aspect of everyone’s life, no matter what age you are. If you have money going in and coming out, then it is extremely important to know how much you can afford to be spending and what you are spending it on.
The millennial generation are no different, but it seems as though many individuals in this age group (born from 1981to 1996) want to start planning their finances and just don’t know how and when to start.
Why are the Millennials Having Trouble?
It’s important to note that this generation of young people have started their financial lives with a bit of a bump. They are one of the first generations who are heavily burdened with student loan debts and joined the financial world at a time which saw finances and salaries plummet drastically, so it’s easy to see why many are struggling to plan their finances successfully.
Because of this rough start to their finances, more and more millennials are spending less on buying homes; many preferring to stay in the financial security of their parents home and less and less young couples are getting married or having children, all because they simply don’t feel that they can afford to.
Is Financial Planning for Millennials Any Different?
The economic climate that they have grown up in may have been very different from that which their parents and grandparents experienced, but the principles of financial planning have always remained the same
- Only spend what you can afford
- Have an emergency fund in place
- Pay any debt off as quickly as possible
- Save for the future by saving now.
In order to get a good idea of where you are financially, it is essential that you are aware of what money you have available to you; what money you have coming in and going out at every point through the month.
Monitoring your incomings and outgoings can help you determine where you can cut down on spending and ultimately save some money for the future.
However, when it comes to paying off student debt, there is no right way to go about it. Usually, loans will come out of your salary automatically when you reach the required salary amount for repayments. If you are repaying your student loan, it is important to factor this into your financial planning as it is important that you don’t miss a repayment if you are earning enough to be paying it back.
Here at Burton and Fisher, we offer personal financial planning in Lancaster for people of all ages. For more information on how our advisors can help you plan your finances effectively for the future, don’t hesitate to contact our expert team by calling 01524 416872 and one of our advisors will be happy to help you with your enquiries.