Millennials are given a bad rep and often times looked down by the past generations. They see millennials as people constantly glued to their smartphones, taking selfies, and difficult to work with due to their search for a work-life balance.
Although some of these views are apt and true, there’s one thing that is a huge burden to a lot of millennials (other generations can relate) and that is financial stress.
Money problems keep us up all night. This is a heavier burden for those who have student loans on their shoulders. The fear of not having enough to cover for rent, food, transportation, utility bills, and the likes can then trigger other worries such as losing your job and swimming in debt. Here are some of the most common financial fears that keep millennials awake at night.
The burden of student loans
The value of education is a need for every individual, however, it doesn’t come cheap; especially if you’re expanding your skills and knowledge to a higher degree and expertise.
A huge number of millennials that are currently employed are working to cover their basic expenses (i.e. rent, food, utilities, etc.), one of which is their student loans. This debt puts them in a stressful financial situation that makes them question whether or not the student loan they took was well worth the money for what they earn and experience as an employee now.
If you conduct an evaluation, you’ll notice it’s likely that employees who have student loans on their back are less productive and motivated to work; they also struggle to stretch their budget, hence, live paycheck to paycheck. This makes it harder for them to reach their financial goals and prepare for their retirement.
Have you ever go on days where you couldn’t fall asleep because you’re thinking how you’d go to work without gas money when the paycheck is still a week away? Had a hard time budgeting your income to put a roof over your head and food on the table?
As mentioned earlier, it’s difficult and financially stressful to live paycheck to paycheck. This is usually the case for those millennials who suffer a great deal when it comes to finances.
This conundrum is nothing new to financially challenged people living in the minimum wage–especially those who moved out of their parents and starting with their career. The solution for this? Build a reasonable budget, live a frugal lifestyle, and be wise with money.
Spending more than you earn
Take a quick run down thru your receipts for the past three months, if you’ve come to a conclusion where one of the primary reasons for your financial problems is overspending and spontaneous splurging when you know for a fact it’s more than what you earn, you know what to do.
Losing your job
This is a major issue that concerns a lot of employees, especially those who are in an industry or company where downsizing, layoffs, or even being let go by the administration is a common occurrence. Who knows what’s going to happen next. This is why it’s always a good idea to have money set aside come rainy days.
If the day comes where you’d have to resign for unexpected reasons (i.e. health issues) or you’d have to be let go by the company, are you prepared for the coming days? The cardinal rule is to save at least three to six months’ worth of expenses to cover your back such the circumstance happen. Set separate savings account for this purpose to help you with it.
No retirement fund
With the burden of students loans and the difficult task of living paycheck to paycheck, keeping up a savings—let alone a retirement fund is the least of your priorities. However, if you want a secure future, a retirement fund should be at the top of your priorities.
Getting yourself buried in debt
One of the primary causes of every millennial’s (and people, in general) financial woes is getting themselves buried in inescapable debt.
We know how much you need money right now and we understand your reasons for taking out a loan or borrowing from your family or friends, however, you need to stop making it a habit. Otherwise, you’ll only find yourself in a debt cycle.
If you do have pending debts you ought to repay, start paying them now—on time and meet the minimum payment, even better if you can pay more than that to finish off the debt quickly with less interest.
As a millennial, how are your finances holding up? And what are your top three financial worries and what are your ways to combat them? Share your thoughts with us!
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.