Millennials, this is for you. We know you tend to get plenty of contempt from the older generations. You comprise a large percentage of the population. You’re envied for your youth and the opportunities that you have access to.
However, in the eyes of your baby boomer parents, you are setting yourselves up to make the same financial mistakes they made by adhering to simple statements that keep you from getting rich.
Here is a list of common excuses that millennials give for not saving for the future.
- “I’m living my life day-by-day.”
Currently, millennials are young adults in the prime of their lives. Many of them enjoy socializing and keeping up with the latest trends. As for the near future, they haven’t given it much thought. Sure, you may have loose cash and a steady income, but that money isn’t earning interest in savings accounts, or placed in wise investments.
Instead of living on a day-by-day basis, it’s better to live below your means. This allows you to save money and let it grow.
- “I don’t have enough money.”
Most of the time, money itself is not the problem; the real problem is that millennials simply do not consider investing as a priority for the money that they do have.
There are a lot of ways to break the cycle of living from paycheck to paycheck and improving your sense of personal finance.
- Start a Budgeting Scheme. Plan out your expenses to determine how much you have to set aside for savings and investments.
- Be Disciplined About Expenses. The latest fashion accessory or gadget will be out of style soon enough. If you set aside a portion of your income as disposable, make sure you stay within your limits.
- Earn Money Outside of Your Day Job. If you think what you’re earning is not enough, consider other revenue streams. You could get a second job or start your own simple business like selling clothes online. The internet has plenty of opportunities, and there are other ways to earn money online that are available. You don’t need to look far.
- “I’m fine with what I’m earning. I don’t really need it.”
Contrary to what millennials think, retirement age is not an abstract concept, nor is it a lifetime away. Don’t be under the false impression that you could keep up whatever it is you’re doing, forever.
Instead, face the harsh reality that as you get older, financial pressures grow and become more complicated. Invest a little bit of money now and make it a habit.
- “It can wait. I’m still too young anyway.”
Unlike money or other tangible resources, time isn’t something that you can take back, or have someone simply give back to you.
Before the responsibilities of financial burden outstrip your earning capacity, take time to learn to invest and save your money, at least so that you’ll have the cash when you need it as you get older.
- “It’s too risky!”
Younger people may take more risks, but when it comes to investing, they avoid it like the plague. Everything has associated risks, from daily choices to business ventures, and even time and energy commitments.
Being smart and having a plan and a strategy for letting your money work for you will reduce the risks.
- “So-and-so said it’s a bad idea.”
Sometimes peer pressure is all a person needs to discourage them from doing something, whether or not it’s in their best interest. There are even some commonly known money “tips” out there that could cost you more dollars than you save.
The best thing you can do is to educate yourself. You may make mistakes along the way, but learn to invest your money while you’re still young and the risks are still small.
- “I just don’t understand it.”
This excuse comes in many forms, but what it tends to communicate is, “I just don’t WANT to understand it.” Millennials, you are your own worst enemy here. In this day and age, information is more accessible than ever and learning new things is something that young people can do better than their older counterparts.
Professionals who are willing to help are easy to find, so don’t be afraid to seek them out.
So, millennials, if you want to have a more secure future, you should start by avoiding these statements and start thinking about what’s ahead in the next 10-20 years!