In the year 1991 Neil Howe and William Strauss coined the term ‘Millennial’ to address the current generation. They chose to call it Millennial because their research showed that this generation would be drastically different than the one before and therefore needed a distinct name.
Millennials in general are anyone who has graduated from college, has a well-paying job and has a bunch of credit cards to use. Some millennials want to experience a flamboyant lifestyle, be outspoken and have an audacity to live without savings. They seem to have a want to live today and not worry about tomorrow.
This attitude can lead to financial turmoil and hence need to tread carefully when dealing with their daily jobs, monthly spending and credit card debt. They would not want to max out on their credit cards and pay huge loan EMIs.
You, me and all of us are millennials so let ‘Me’ tell ‘You’ about some financial mistakes that we need to be careful about
Living in a smartphone generation has its perks and this gives us a sort of ‘Know it all’ attitude relying on our own instincts to make decisions and ignore sound financial advice from our family members or experienced superiors.
Credit card malaise
Being a hit among us, credit card usage enables us to ‘spend now and pay tomorrow’. Many of us sought to use multiple credit cards; managing multiple bill payments each month and putting us into a risky situation of payment defaults.
Because of the way Credit Cards work, we don’t always see cash leave bank accounts instantly on purchases. Not keeping track of expenses leads to maxing out of our credit card limit.
Missing out on paying of rent or loan EMIs is one thing; not making amends and piling up unpaid bills calls for poor decision making from us.
These also affect our credit score and make it difficult to avail personal loans from banks or lending platforms.
Need for Savings
Another mistake that we make is towards Budget. Saving money is not considered important by us and this can lead to lack of funds for a rainy day.
During medical or financial emergencies we will not have the required funds to utilize.
Live on one paycheck to another
Lavish lifestyle and spendthrift ways can lead to disastrous consequences. Awaiting the next pay slip to clear off pending dues will not leave any cash to pay for installments or EMIs for the current month.
So be wise my friend. Avoid these mistakes to enjoy strong financial freedom.