Financial planning is an essential part of any human life to manage wealth and capital. There are many people in the world who have wealth but do not know how to manage it. This unknowing behavior fades away the wealth and leaves them to rags. For most of the parts, it is a true story of a financial advisor who shares his experience. Through the experience, you will find the various aspects of financial management without even knowing accounts in the first place. You do not need to be an accounts graduate or a fellow in financial management to grow your wealth to change the status quo for better.
As the financial advisor reckons and I write, his major clients were predominantly business owners, retiring personnel, or people showered with sudden wealth. Sudden wealth can be generated from certain lawsuit settlements or business sale or liquidation of assets. He says he served his clients for more than 20 years and many of them have their own kids. Accordingly, the Millennials are more proactive than their seniors in terms of financial concerns. They are mostly surrounded by the worries of student loan debt, job settlement, and creating financial success. The financial advisor often gets taken aback that how these small kids have more concern about managing wealth. He remembers that when he was their age, all he thought about was playing. So, he devised 20 tips for the 20-years-old.
Tips for Millennials
There are no particular order or rank as to which tips should be followed with priority and which shouldn’t be. It all depends on the situation but mostly, these are the tips that our financial advisor wishes he knew back then:
- You ought to take some bigger risks. If you are playing too safe at the tender age, then you certainly fail in the long run. He suggests that one should not be too involved in the little things and occupied with little failures. The age is a prime factor and takes bigger risks while you are young because you will still have time otherwise you will regret in the future wishing that only if you did.
- Another precious tip is to invest in you. Investing does not only mean to acquire a formal education. It means to build you and prepare for the future. In one way or the other, a person becomes a professional but it is up to you if you want to become one at the age of 25 or 75. There are various ways to build personalities some of which include reading books, taking online courses, engaging in extra-curricular activities. You will have to remember that you are your best asset and people will look at you if you offer the value that they desire.
- You have to become money smart. It seems rather difficult to acquire financial knowledge at times but it is not impossible. With correct guidance and suitable mentor, you will be able to handle your money better than any portfolio manager. There is always a risk of losing but you ought to take it.
- Being flexible and moving to new areas can expose you towards several opportunities. There is always geography of success and you should seek for it. Growing up in a certain place cannot restrict you to begin life somewhere else. Moreover, starting a life in a place where you have never been preparing you for the struggles in a long run and helps you grow wiser.
- Be more thoughtful about your life and goals because it is easy to be reactive. You need to take an active part in your life because that is how you were born. You will always need a push but a push from the mind is more worthy.
- You should always seek a change of your status quo towards better. You should develop an obsession towards growth and that is the only way to move forward. For that purpose, you need to create priorities and devote your time and energy towards the one true goal.
- You need to understand the difference between savings and investing but you need to carry out both in order to have good financial health even after your retirement. The first step is to create a savings scheme from your pocket money and put aside some for future investments. The remnants can be used as your disposable money.
- Avoid taking debts for school as you might have to acquire more debts during your graduation season.
- Do not aim for balance but concentrate on one task. Focusing on balance will yield mediocre results but committing to one project or goal will enhance your skills.
- Keep your expenses as low as possible. As we have already mentioned that expense is the remnant you will have after savings, you should be worried about growing that margin a little bit more.
- Try to find friends who will be able to reinforce your positive behavior and reduce your negative behavior. It is high time you select your friends wisely as you will be spending your valuable time and energy with them. So, it should better yield favorable. You can also use external resources and services like these to improve your financial standing.
- You should focus on your health and keep track of your energy.
- Creativity and the tendency to create is a major aid to financial success.
- Make a routine to invest your time wisely. You can indeed make a routine to follow every week as to how you want to spend your day or week and doing what.
- Stand out at work and try to take jobs that are difficult. As you take on the difficult jobs, you will have to do more research on the problem and the solutions that will come out will help you shine out from the crowd.
- It is advisable not to be insecure about the age because there is no age to make a difference. People take their own time and pace to reach their destination.
- Focusing on the strengths is much more appreciated than working on the weakness.
- Find the reason that drives you. You need to find the goal and motivation for you to keep going.
- Responsibility is another virtue that aids in financial as well as life success. You should be able to take charge of the outcomes because no one else is at fault.
- The most important part of any financial success is to invest and create. So, work towards creating assets either by making a product and selling it or investing in others to become affluent.
Now, there are points that you might agree with and some with which you don’t. But, what we would like to reflect is that the list is not exhaustive. There are some tips which you will find more enticing than others and some of them might not be on the list. However, it is all about you and how you can manage. We are here only to share the experience.