5 things all millennials should do to achieve financial freedom

Insights

The definition of adulthood has changed throughout the years. Previous generations’ definitions were more inclined towards starting a family and having kids, and buying a house. For millennials, being an adult is more about securing a job and not asking parents for an allowance anymore. So it’s not that millennials do not behave like adults, they’ve simply redefined it

However, you may find that many still have to ask their parents for daily expenses, and often have trouble paying their personal bills. So here are 5 things all millennials should do to avoid being in a similar situation.

1. Don’t pay too much attention to trends

In the age of social media, we can easily fall into the trap of trends. While the internet has enriched pop culture greatly, it has also promoted a new brand of consumerism where people are encouraged to buy according to the latest viral trend or internet fad.

But what you should be more concerned about is whether or not you truly need those items. Even if you’re Kanye West’s biggest fan, you don’t really need to buy his expensive plain white T-shirts. You can get a white T-shirt for much less. Focusing on your own lifestyle and only on what you need is the first step towards financial freedom.

2. Save, save, save

Saving is truly important because that rainy day will come. And it is much easier today to save money thanks to the abundance of financial apps around. You can simply track the money you spend and save it in an Excel spreadsheet which you can then access anywhere via your smartphone.

3. Start something on the side

The advent of social media has given rise to the whole new world of business avenues and opportunities. Scrolling through your Facebook feed will allow you to see your friends’ problems, interests, passions and buying trends. A quick analysis of what you see on your feed can give you ideas on what you can sell to solve their problems and improve their lives.

This isn’t limited to the online world though, as you can go old-school as well and find side jobs at places that fit your schedule.

4. Stay (credit) healthy

The better your credit score, the more likely you are to be approved for a loan. A healthy credit score is what you should always maintain when you’re planning to apply for a car loan, or a loan to continue your studies.

Things that can negatively affect your credit score include: not paying your loans on time and not paying your credit card bills. So, avoid taking out a new credit card if you can’t handle the payments. To be credit healthy is to be financially free.

5. Switch to term life insurance

Having life insurance is important, but if you find that the monthly premiums are a bit expensive you can opt for term life insurance. Term life insurance offers life protection at a lower premium while also allowing you to opt for the specified period of time covered e.g. 10 or 15 years.