5 of millennials’ biggest financial fears
Among the many stresses life throws at us, one of the most soul-sucking is financial stress. Money matters is one of the many people’s top concerns. It isn’t that much surprising—money is what makes the world go ‘round, that’s the truth.
Photo by Alexis Brown
Money worries keep us up all night—the fear of not having the resources to pay for rent, electricity, gas, grocery, and other utilities and bills eventually turns into more deeper thoughts such as losing your job, being alone, and drowning in debt and dying of homelessness.
Remember that night you couldn’t fall asleep because you kept thinking and finding out ways how you can pay for rent and put food in your stomach, because your paycheck is yet to be given for a week?
This is common especially for those starting off with their careers. You have a ton of bills and utilities to settle while living off a minimum wage. How do you get through this? Simple—build up your savings. Sure you might need to work extra hours or two jobs in the beginning but it’s all for your own. Money isn’t given, you have to earn for it.
Spending more than you earn
Okay. there’s no problem splurging on here and there—it only becomes an issue when it goes on for too long and frequently. If you can’t afford to buy that “thing” you want with cash, don’t swipe your credit card just to have it. Also, if you can’t afford to pay for it in full, you simply can’t afford it.
Reevaluate your fixed and discretionary expenses; are there anything you can cut back on such as your shopping allowance or daily coffee runs on Starbucks? Financial security means learning how to live within your means.
Getting yourself buried in debt
No one wants to take in all loans or borrowed money only to end up in a debt cycle. We understand your initiative to take out loans or borrowed money because of unexpected expenses (i.e. death in the family, car/gas expenses, etc.) but do know beforehand that you need to be responsible for paying off the debt—and not take out another when you have other options.
Debt can put a huge and deep hole in your bank account. How do you get over it? Pay off the debt whenever you have the money; don’t set aside to pay for later, do it immediately. Who knows what temptations can do that that money.
Losing your job
Layoffs, downsizing, or simply let go for administrative reasons are all concerning issues that comes to mind from time to time. Who knows what happens to your company or job. You need to prepare for this even when you least think it could happen.
You need to save a good chunk of cash for rainy days. On a separate account or savings, save up at least six to eight months of your income for a good enough emergency fund. Should layoffs or downsizing happens at work, you have a backup fund to shoulder your expenses til you find a new job.
No retirement fund
We know you already have a lot on your plate: emergency fund, savings, bills payments and the works, and others. But there’s another important fund you need to set up as early as in your 20s—your retirement fund.
We know retirement is far from the horizon but you need to save now and have more in the bank. Than later in life and have less or have a difficult time saving. Put aside at least $50 each payday for your retirement. When you gradually lift off a weight of debt off your shoulders, add more to your retirement fund. Your small deposits make up a big amount when summed up.
About Chie Suarez
Chie Suarez has spent time figuring out ways on saving money and stepping away from her go-to retail stores. She then became a writer for Speedy Money which offers hassle-free loans services.
Featured image from Alexis Brown