1. Analyze your income and expenses
Getting a deeper understanding of your income and expenses is the first financial planning tip for every young person. Many millennials tend to live from paycheck to paycheck, making saving or investment an impossible goal.
However, they forget that you do not need a lot of finances; you can invest with as little as $100; you just need to forgo some little expenses such as Starbucks coffee or eating out.
Start right now by tracking your expenses and creating a budget. The good thing is there are many free budgeting apps to help you, and a plus is that the softwares are compatible with my smartphones and can link with your bank account, capturing any transaction in real-time.
A budget will help you analyze areas where you need to reduce and increase on saving.
2. Start saving and paying off your debts
If you look around, many millennials are living from paycheck to paycheck. At the same time, others have resorted to credit card loans to maintain their flashy lifestyles without acknowledging the need to have an emergency fund or invest for retirement.
Like we have discussed above, tracking your expenses and creating a budget will give a clear picture of where your money is going. So, while creating a spending plan, make a point of listing your debt and come up with ways to pay off your loans.
For instance, If you are neck-deep in student loans, you can consider consolidating, refinancing, or finding other quicker and easier ways to repay, such as getting an additional job. You get to fix your bad credit score by paying off your debt, thus increasing your chances of qualifying for a mortgage at better terms or even getting an auto loan.