5 Biggest Money Mistakes Millennials Make

Youth of any country is the building block of any economy. The financial overview of an
economy is highly affected by the measures taken by the young generation of the
nation. With innovation and upgradation of technology gaining information has become
a cakewalk. Financial Awareness helps people to gather information, analyse market
scenarios and then investing in the various profitable market opportunities. This blog
aims to create awareness amongst the millenials about growing financially

1. Failing to Start Investing Early

Being an early riser with respect to investment will prove to be a boon in the future.
The funds being invested will reap earnings which can be used to fulfill the unforeseen
needs in coming times.There are different ways of investing hard-earned money,
including Mutual Funds ,Stocks, Index Funds, ETFs,Real Estate Investments. If you’re
clueless about how to invest, you can approach a financial advisor.

2. Spending at the Rate of Earnings

The most damaging money mistake millennials make is spending more than they
have. They invest in the not-so-essential commodities and hence are not left with
enough funds to invest in financial sections. Investment on assets, securities, etc will
give profits which can saved. Controlling the spending will help you save up for the
future .Loans and advances taken at higher rates to purchase luxury items will
increase the burden of financial payment.

3. Not Having Emergency Savings

An emergency fund is a safety net which will protect you in case of any financial
emergencies such as a job loss, illness or injury. Savings from the past should be
allocated such that it provides a financial cushion to the household and your needs at
the time of unforeseen challenges. As much as 6 months of emergency funds should
be maintained.It gives financial as well as emotional security.

4. Letting Credit Card Debt Pile up

The habit of swiping credit cards can be addictive and disrupt your financial
calculations. Credit cards can be a great tool, if used responsibly.  The problem the
millennials generation is facing is that most millennials use their credit cards for almost
everything. Because this “buy now, pay later” mentality can come at a cost. High
interest rates and never-ending minimum payments can steal hard-earned money that
should go towards short-term savings or investing for retirement. Use your credit card
wisely depending on your cash flow management.
 5. Not Having a Plan to Get out of Debt

Before you spend a hefty amount on luxurious items maintain a backup plan for
the payment if it is purchases on loan. In case of loans and advances taken a
small amount of the earning should be saved to prepare for repayment. Saving in
bits will not seem hectic

Inculcating the habit of financial planning will take an individual a long way. Saving
makes a important part of the life financially. Being of sound financial health will provide
financial as well as emotional security to an individual.