With the pressures of education loans mounting to gigantic heights (for some of us) and the need to get a fancy CTC as a fresher, the weight on the shoulders of Millennials or Generation Y is something that we all have witnessed. Ever wondered why most people pay off their educational loan well into their 30’s while getting a degree at the age of 22? The rule is simple- ‘calculate like your life depends on it’!
Still wondering how to pay off your student loan or save for your future personal or professional goals while still surviving in this world and enjoying your life. Here’s a list of 10 Power Tips that will make sure you make the most of your time, money and future!
- Chose Debit Card payments: The best way to switch to a loan-free life is to make sure you avoid new loans. Sounds simple, right? Not so much. We guarantee you more than 70% of the readers will have a credit card stashed somewhere in their wallet that is charging you an interest as you read this article! Life hack? Clear off the credit card bills and only stick to debit card payments for daily expense!
- Invest in retirement funds: The truth is we all are earning to have a better old age. And as much as you think you can start your retirement fund when you are touching 40, it will not suffice for your medical expenses and that vacation home that you want to retire to. Instead start your retirement fund as soon as you get a job and make sure it is your priority.
- The golden rule of saving 15% every month: The hack many millennial swear by. Apart from all the expenses (loans, utilities, pubbing etc.) try to save a meagre 15% of your monthly salary for any liquid fund in case a small emergency shows up. Result? You won’t have to make phone calls to your friends for money and this will guarantee you remain debt free.
- Mutual Funds for short or long term investments: Mutual Funds have proved to be one of the most preferred investments. Invest in short term – moderate or risk free funds if you are a beginner to gradually invest in long term plans and high risk equity funds.
- Use conveyance hacks: For those who are investing anything more than 15 % of their salary on conveyance, you will be amazed at how much money you can save by just taking care of your travel. Invest in a budget ride that runs on efficient fuel system or simply carpool with other colleagues. I’ve been there, done that, only to regret it years later.
- Invest in things that add to your Resume: The moment you invest your money and time in adding value to your skill set- you have the golden egg! This will increase your income and shoot your financial growth through the roof.
- Think about Ease: The worst thing millennials do is to overdo their jobs and get engulfed in the never-ending rat race of buying the latest gadgets and fashion trends and all the expensive stuff that they will barely or never use. Believe me, I am only speaking from my personal experience of buying all the stuff right from the latest gadgets, fashion trends, accessories, expensive mobile phones, latest configuration lapis, gaming devices, music players, expensive watches, dresses, jewellery, shoes, bags, perfumes, make-up and so on and so forth, that I would have barely used. The list is endless and totally useless now (let me know if anyone is interested in buying, will provide some good discounts 😉 ). This is also to put in a word of caution to millennials who might fall into the trap and end up losing their hard earned money on the stuff which will not serve any purpose later on. Hence, I would say, think like a minimal modern monk who doesn’t need much to be happy. Wear clothes that are comfortable, shoes that love your feet and wear a smile that is genuine- and you have the myths of a happy life cracked, trust me, you don’t need anything else! 🙂
- Have a Luxury budget: If the ways of the world are still hard-wired to you and you relish in splurging after the big brand names- take some time off to plan a budget for your luxuries.
- Invest in Health Plans and Life Insurance: Health plans save more money in long term and are quite handy when a visit to the hospital becomes an admittance for a week. The plans ensure your health is not compromised and your wallet doesn’t shrink. Given the fact that life is too unpredictable to be predicted, hence, it’s never a waste of money to invest in a good life insurance.
- Invest in a variety of plans: The most common rookie mistake any millennial under debt can do, is to invest a lump sum amount of money in a single plan. Instead break down the amount and maximize your reach and profit. It will also get you some diversification!
It’s amazing how a few life hacks can go a long way and with so many options available at your fingertips, millennials today can earn more than they owe. Have any handier tips? Share the details with us! 😊
Disclaimer: My beliefs and the financial strategies discussed on this site are not to be used without proper financial analysis of your personal situation. I strongly suggest you seek help of a financial advisor or, even better, a Certified Financial Planner in order to assist you in any financial planning.