Millennials in the 30-something club are getting smarter than previous generations such as the Baby Boomers, who learned the hard way that taking on enormous debt and spending everything they made set them up for almost certain financial ruin. Today a larger part of this generation of adults and parents of young children choose to experience life first, have children later and manage money smartly.
Types of Loans
Millennials are not all prepared for a sound financial future. However, today there are more resources than ever at their disposal. A typical bank loan such as a mortgage or a personal loan are not the only ways people of this generation can acquire funds to cover expenses. If their credit is less than perfect and needs improving, they have the added option to apply online for an installment loan. Many of these short-term loans offer low monthly payments and unlike the local bank, their application process is a bit more lenient. This means that even if they have a few late payments, or even a missed payment, they can borrow a small sum of money to cover the immediate financial setback.
Living Within Your Means
After college, finding a place to live that’s affordable can be challenging. This is where finding something adequate for the first few years while you pay off student loans and other accumulated debt is the best approach. Many millennials dream big. And, because they want more out of life, they are willing to search out a less expensive place to live for the short term and dispense with high cable and cell phone bills. Instead, they shop around for a better alternative like signing on for Hulu and Netflix versus having a large monthly cable bill that exceeds $200.
While most people will need to borrow money from time to time, Millennials seem to have a knack for patience. Many people of this generation have clear and concise goals that they want to reach and are willing to put off buying a home or a large-ticket item such as a car until they have enough saved to secure the best rate. To be fair to the Baby Boomers the internet, which is still relatively new, gives the millennials the ability to search out bargains from various places to get the best price.
Understanding the Importance of Good Credit
Millennials, born during the age of the computer and having access to the World Wide Web, have the added benefit of understanding the importance of credit. Today, they can acquire a copy of their credit report once a year from the three major credit reporting agencies: Equifax, Experian and Transunion for free. This lets them monitor, correct and work towards improving their score more efficiently than ever.
Saving For the Future
There’s no way around it, if you want a sound financial future you need to tuck away money. Investing in the stock market, opening a retirement savings account or committing weekly or biweekly deposits to a savings account are just a few examples of how to achieve your long-term goals.
Planning ahead and getting smart early on with your money is a recipe for success. Whether you just graduated college or have a growing family, separating wants from needs and having the willingness to patiently wait until you have the funds in place for big-ticket items will allow you to enjoy a prosperous financial future. As an added bonus, you’ll live well and enjoy life while doing it.