The high cost of living and Education leads to considerable debt. More than 70 percent of Millennials have at least one source of long-term debt and 30 percent have more than one, often including student loans, revolving accounts, and unpaid medical bills. All this debt affects Millennials’ ability to manage their spending.
Tips which will Help Millennials to manage their personal Finances.
- Avoid buying property on Loan as it eats most of your earnings unless you have a clear plan for its repayment. It’s important to monitor cash flow. Through the house will be your asset, your liability will be much more.
- Start a SIP (Systematic Investment Plan) at a very young age. Try a save at least 15-25% of your earnings.
- Do not let this sentence scare you “Mutual fund investments are subject to market risk. Please read the offer documents carefully before investing”. Most people investing in Mutual Funds just because of one warning. Yes, there is a market risk, but look at the history and growth of the mutual funds.
- Avoid buying a car unless you use it every day.
- Try having a simple wedding.
- Considering Inflation, you are losing money if it is in saving bank account. Do not keep huge money in saving bank account.
- At least 20% of your wealth should be liquid so you can utilize it when necessary.
- Do not have a belief that property and car make you rich. It’s what you save and invest, that is important.
- Never invest in the Insurance for returns, Insurance is not an investment option. It is a risk management tool.
- Do not have a belief that property and car make you rich. It’s what you save and invest, that it important.