Most millennials are now in their 20s and 30s – and that’s the time most of them make big life decisions like getting married or buying a house. But are the millennials on the right path as far as money management is concerned? With the legions of financial professionals wooing them for business, they can get misled. But if they play their cards right, they could very well be on the road to becoming millionaires.
1. Learn Self-Control
Although you can effortlessly purchase an item on credit the minute you want it, it’s better to wait until you’ve actually saved up the money. Do you really want to pay interest on a pair of jeans or a box of cereal?
If you make a habit of putting all your purchases on credit cards, regardless of whether you can pay your bill in full at the end of the month, you might still be paying for those items in 10 years.
2. Control Your Financial Future
Instead of relying on others for advice, take charge and read a few basic books on personal finance. Once you’re armed with personal finance knowledge, don’t let anyone catch you off guard—whether it’s a significant other that slowly siphons your bank account or friends who want you to go out and blow tons of money with them every weekend.
3. Know Where Your Money Goes
Once you see how your morning java adds up over the course of a month, you’ll realize that making small, manageable changes in your everyday expenses can have just as big of an impact on your financial situation as getting a raise.
In addition, keeping your recurring monthly expenses as low as possible will also save you big bucks over time. If you don’t waste your money on a posh apartment now, you might be able to afford a nice condo or a house before you know it.
4. Start an Emergency Fund
Having money in savings to use for emergencies can really keep you out of trouble financially and help you sleep better at night. Also, if you get into the habit of saving money and treating it as a non-negotiable monthly “expense,” pretty soon you’ll have more than just emergency money saved up: you’ll have retirement money, vacation money, and even money for a down payment on a home.
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