A budget is among the most important money-management tools that you can teach millennials to use. It can be a “second nature” to most of you, but for most millennials who are starting to earn/manage their money building, having a budget can help them manage their expenses, thus avoiding overspending. In this article, I want to talk about money tips for Millennials. So if you’re just starting out; maybe you’re getting out of college or getting your first job, you might not have a lot of money yet but there’s still some basic financial strategies you can do to help improve your financial life.Create Your BudgetThe first tip is to create a budget.
You really want to start by having an optimal budget for your life and your current situation. Try to figure out how much money you’re bringing in every month from your income. Whether it’s a job or maybe you have some sort of grant or scholarship money.
Calculate Your Monthly Expenses. Calculate all your monthly expenses the rule of thumb and financial planning is to allocate your net income into three ways. So about fifty percent of that net income per month which is after tax money should be going towards fixed expenses. This would include things like your;-Mortgage-Rent payment-Car payment-Health insurance-Utilities
List All Your Basic Necessities. Include all your basic things that you have to pay every month in order to live. Twenty percent is what you want to start saving toward the various financial goals you have. This might mean making extra debt payments to start paying off your student loan debt or maybe have some credit card debt. You can make extra payments to pay those things off faster or start building up your cash cushion which is money in the bank for emergencies or even start saving for retirement. Don’t let twenty percent scare you. If you can’t start with twenty percent right away, you can start with something small because that’s still better than nothing and then finally the last 30% is what you can use on fun expenses. These would be all the variable things in life such as travel hobbies, going out to eat, shopping etc. This is where you want to spend that 30%
These are some few amazing ways to start budgeting your money and making sure you’re paying your bills on time, paying yourself first by saving, and then you use the rest of your money on all the things you like to do in life. Hope you found this guide helpful.