Money is a major source of stress for many people, particularly for millennials who may not always possess the life experience and financial knowledge that older generations have. In addition, many millennials feel that they have made good decisions, such as getting a college degree, only to wind up with debt or find themselves facing one money issue after another. Here are some of the typical financial problems millennials may face and some tips for dealing with them.
Too Much Debt
For many millennials, having too much debt (including student loan debt and credit card debt) is their main source of financial stress. To tackle this issue, it may be tempting to ignore the problem, but it is important to make a plan to get out of debt. To avoid spending years paying off the debt, you will need to pay more now. This will not only help you to get out of debt faster, but you will also avoid paying thousands of dollars in interest charges. In addition, try to pay more than the minimum payment each month if possible. Another good strategy is to negotiate with your bank or credit card company for a lower interest rate.
High Rent And Living Expenses
Many millennials prefer to live in big cities to pursue jobs and enjoy a more active social life. However, this often translates into a higher cost of living. If you want to live in a big city, try to take advantage of the amenities in order to lower your living expenses. For example, get rid of your car and use the city transit instead. You can also try splitting the rent with a roommate, or negotiate with your landlord for a rent decrease. Another important step is to grow your income so that it keeps pace with your high living costs. You can do this by looking for freelance jobs or working side gigs for extra money.
The single best way to tackle financial problems is to aim for a lower cost of living. Don’t be afraid to live more cheaply than your friends or move to a cheaper city if it helps you meet your financial goals.