Are You A Millennial? Know if You are Making These 5 Mistakes
If you’re someone who was born in the (in)famous ‘80s or ‘90s, then you can count yourself as a millennial. And man, that was a good era! We grew up far away from this addictive technology. A football match for us happened in the ground, not in a gaming room. We are also the generation who grew from books and blackboards to tablets and projectors. We have lined up on a phone booth to make a call, and we have used the phones which can be operated just by a voice command. In short, we have done everything. The generation before us missed the experience of enhanced technology and the generation after us missed the good old days where we enjoyed each other’s company more than our phones. In short, we were born in a golden era.
If you are a millennial, this is a very critical age for you. You must be somewhere between 19 – 38. Although there’s a huge gap between 19 and 38, still this is the age when you are young, full of energy, and you have everything you need to build up a stable and happy life. But some of us go down on the extreme track of ‘You Only Live Once’ and forget to shape the future in the way we should. While it’s fine to live in the present, but extremism of any kind is never good. Following are such mistakes which the youth aka millennial is making:
1. Earn, Spend, Repeat
Most of us fail to follow a budget. Let us rephrase. Most of us fail to even make a budget. Whatever comes in the bank account flows like water to unnecessary purchases. People, it’s crucial to put a cap on your monthly expenses. Make a budget and stick to it. List out your (necessary) monthly expenses and limit your spending to it. Keep a certain percentage of your salary fix which should go directly to your savings account. Don’t forget to invest money. The more you do, the more you would get to spend later.
2. Zero Asset Goals
It’s understandable that the economy is tough, but that’s no excuse for not planning to buy a house at all. You’re just giving away money if you’re renting for a lifetime. By saving a little, you can purchase a nice house for yourself and the money you pay as rent can go as your EMI. That way you would have your very own house, and you would be building an asset for the future. We all know how land prices usually go up!
3. The Not So Wise Use of Credit Cards
A credit card can be a rescuer in tough times, but most of us make it a liability by misusing it. Since we don’t see any money getting deducted, we don’t really care about where we are swiping and how much we are spending. At the end of the month, we just pay the bill without really checking where we spent our money. This is the worst way to use a credit card. Make sure you’re not blindly swiping it (It’s not Tinder, people). Put a maximum limit on it, and always try to be under it. Also, never delay the payment of the credit card. The interest rates are sky-high. Always pay on time.
4. The Reckless Riders of Life
Insurance sounds like a foreign concept to some of us. Some of us become so busy living in the moment that we forget everything about tomorrow; our future, our health; the well-being of our family. It’s highly important to have a safety net in life, for your future’s sake, and for your family’s sake. Buy health insurance as well as term insurance.
The health insurance will take care of your finances if you have to go through some medical emergency and the term insurance will take care of your family’s financial situation if something happens to you. Make the right future choices. Today, many insurers like Future Generally offer ample benefits with health and term insurance. For instance, flexible premium payment terms, discounts on larger sum assured, rider facilities, tax savings are some of the benefits of term insurance that you must never miss!
5. No Retirement Plans
If you are old enough to handle a drink, you’re old enough to set up a retirement plan. Unfortunately, both the things we learn too late in life. The retirement fund is something which will take care of you once you don’t have any energy left to go to work. Investing in a good retirement plan is extremely important; not just for you, but for your family as well.
Your retirement plan would be the sole bread earner once you bid adieu to the infamous 9-5 life. So, set up a retirement fund today. For doing so, you can start investing in stocks, ELSS, or Unit-linked insurance plans (ULIPs). However, make sure that your investment is as per your risk-appetite and expectations of your retirement. Do you want to spend the evenings chilling down at some beach after you retire? Plan accordingly!
The Bottom Line:
Aforementioned points are quite basic if you think, yet most of us ignore them while we run in the race of life. Remember, your future is in your hands. Plan it well!