Finance

Sources of passive income for retirees – Keep building your financial safe

Passive income is the stream of income which almost everyone dreams of because it lets you generate income either after working at your day job or without working at any job. It often needs enough effort and time to create streams of passive income but once you get to know such sources, they serve you well for many years to come. Passive income is generated by a rental property or by a business which you own but in which you don’t participate actively. If you’re an investor, you may already be investing money and whenever you make good investment choices, you get back the money that you invest. Here are few ways in which retirees can generate passive income.

  • Rent your property if you have more than what you need

Irrespective of whether you purchase a second property or you rent out unused space in your home, transforming into a landlord can definitely be a good way of generating passive income. However, you should also keep in mind that becoming a landlord can definitely be an active endeavor. You may have to put in considerable amount of work when you find out renters and when you got to maintain your rental property.

  • Opt for a side business

When you’re retired and yet you create a side business, this can be a good investment for the years to come, especially when you can successfully start your business with a plan to turn it into a passive income stream. Whichever business you start off with, make sure you have the goal of hiring other people who can later on run your business. Start hiring writers if you have an online website for your business so that they can write professional business content for your website to be seen on the web.

  • Invest in dividend stocks

How about continuing with investment through several decades of retirement? You can keep a close watch on your portfolio in order to ensure that it’s performing well. Dividend stocks offer current income and they also have the potential to make capital gains. Dividends pay you right away and they can definitely be a good and effective way of generating extra income during retirement. When the company doesn’t perform well, the dividend payments can even be reduced and eliminated.

  • Social Security benefits

In case you work in America, then you’re paying into the social security program through your payroll taxes. The SS benefits many include disability income, retirement income, Medicaid and Medicare. Retirement benefit can start off at an early age of 62 and the total amount is dependent on the amount you’ve earned over all the working years.

So, that’s just some of the most common ways of generating passive income even after being a retiree. However the only problem with this is that it takes lot of time and effort to keep the money flowing. Nevertheless, you shouldn’t let boredom come in as that is the biggest obstacles which can keep you from making money.

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Financial considerations of starting a family – A bundle of joy and lots of planning

Starting a family of your own is a major step for every adult as your financial focus shifts when you think of starting your own family. While you could earn money and spend it as per your wish when you were single, now you have to make sure your family needs are met first. This is truer when you already have young kids or your first child is on its way. It is vital to get a solid grip on your personal finances and follow few of the best practices to make sure you can give your child a financially secured life.

It needs no mention that a child can swallow up big chunks of cash and you can be totally drained off when you raise your child until he becomes 18 years of age. So, here are few tips to take into account.

Reign in your finances and exercise control on your dollars

With a host of new expenses ranging from child care to baby food that are coming your way, it is vital to have a firm grip on your income and expenses of your family. Day care centers for children cost an average amount of $974 per month for toddlers and $735 for pre-schoolers in the US. In order to have control on your finances, you have to follow a budget and track your cash inflow and outflow. This way you can immediately understand how soon you can spend your dollars and on which items. Use budgeting software to keep hold of your financial situation.

Securing your power of earning

If you’re the only breadwinner of the family, it is of utmost importance to safeguard your loved ones in the event of your death. Though you may think that it is a pretty inconvenient topic, yet you need to face it that you won’t live forever. Effective financial planning demands you to get the perfect life insurance coverage so that you can ward off financial hardships during times of economic stress. Get an insurance broker who can guide you on your insurance policies and tell you which the right one for you is.

Saving enough money for future college expenses

College tuition is excessively expensive in the United States and hence when you’re about to start a new family. Majority of the Americans rely heavily on their parents to fund their college education and hence you being a parent should be able to save enough money in order to help your family. The best thing you can do in order to facilitate college education is to open savings account whenever your child is born. Keep making steady contributions over a period of time to benefit.

Therefore, whenever you’re about to start a new family and you’re about to welcome your bundle of joy, you should start taking care of your personal finances to welcome him in a financially sound environment. Follow the tips listed above in order to brace yourself against all odds.

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Achieve a simplified financial life – Take stock of your finances

If you’re someone who has already set yourself on the journey towards minimalism a few years back, you must have realized by now that living on less will always lead to a simpler life. But although you may know that living on less is something that is good for you, yet you must be wondering about the ways in which you can apply these on your money. Finances play a very important role in everyone’s life and you have to master the art of handling your finances in such a manner that your finances don’t start controlling you.

Given the fact that finance has become extremely complicated on all levels, you should always be sure about the ways in which you can simplify your financial life and exercise greater control in your hands.

? Combine your retirement and bank accounts

Majority of the people can just be fine with a single checking account and a single savings account. In case you have more than one account, combine them into a single account, might be 1 checking account and 1 savings account. You can easily simplify your banking without leading to any kind of loss in the level of service. The same thing should be applicable on retirement accounts.

? Paperwork should be as less as possible

Owning multiple bank accounts for carrying forward different fiscal pursuits can lead to number of paperwork and documents building up all over your home. You might not even have time to go through them and hence this can become extremely stressful. Eliminate any paperwork which is not necessary and shift all notifications online so that you don’t have to go through the hassles of taking care of large numbers of documents.

? Downsize to just one credit card

Multiple credit cards are the biggest reason for all the financial discomfort. If you have a passion for rewards or 0% interest rate promotions, you may have built a worthy inventory of credit cards. But as soon as the introductory period is gone, the cards will not be of enough value. You may keep them open for purposes of improving credit score, but you should focus on a single card. Choose the one which offers best benefits and keep aside all the other ones. You will find it easier to manage a single card rather than 5 or 10.

? Try to eliminate debt

Debt will not only cost you money but it can even make your life complicated. You will not only have to spend time paying bills, but debts are serious stress releasers. So, each debt that you eliminate will give way to less complication in your life. Get help of debt relief programs and simplify your financial life by becoming debt free.

Therefore, if you’re tired of the complicated financial life that you’re going through, you should try your best to make your life simpler by following the points mentioned above. Stay on top of your finances and don’t let it control you.

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Work = Financial Security – How Can You Ensure You’re Always In Demand?

Job security is such a basic necessity. One of the reasons that’s the case is because it’s not really just about job security; it’s about security of your life. If you are constantly worried about where your next paycheck is coming from, it’s almost impossible to feel that your life is on an even keel. You can’t make plans, book holidays, do those home improvements – all because you’re constantly concerned you won’t have enough money in the bank.

That’s why job security matters; because it impacts every other area of your life.

Yet it’s a sad fact that more and more of us are struggling with job security. Gone are the days when someone would begin their working life in the post-room and end up as the CEO. That used to happen; in fact, notable figures like Simon Cowell began their route to the top from the very bottom of a company. That just doesn’t happen any more. Now, we are more likely to work freelance for a variety of companies, we switch jobs more often, we dip our toe into the potential horrors of the gig economy. Jobs: they just ain’t like they used to be.

How do these two things come together, then? It’s like a battle royale:

PRESENTING…
The Desperate Desire For Job Security!

vs.

A Changing Employment and Economic Landscape That Offers Little Job Security!

And you’re the one stuck in the middle, taking blows.

Find An Industry With Job Security

Ha! Well, obviously, that’s the simplistic answer. Of course we’d all like to find ourselves in an industry with great job security. It’s not like anyone is going to a job interview and, when asked if they have any questions, is answering: “well I would like it if this job was a little more insecure if possible…”

So that’s what we want. Of course, other people want it too – which means we have a whole heap of competition for the professions that could offer us what we want. Nevertheless, the same is true even of terrible entry-level jobs. There’s always competition, so don’t let that put you off.

Consider Retraining

If your current area of skills and expertise doesn’t offer itself to secure employment in an industry that you can rely on, then it genuinely is worth considering retraining.

Yes, it can be expensive, and yes, it is going to drain some of your free time. It feels like a huge commitment, and it’s a leap into the unknown that you might be reluctant to take.

However… you have to ask yourself if you have a choice. There are serious financial issues that it’s important to settle. To be blunt, you can’t content yourself with “just getting by” right through to retirement. If you really want to find you have the financial freedom – and thus the life freedom – that you seek, sometimes, you have to make a change.

And if you’re going to do that, make it a change into an industry that offers security. There are plenty of them – and we’re going to go into detail very soon – and they could make a huge difference to your life. No more studying the fluctuations of the economy, terrified a small change could leave you without a job. No more feeling that you’re not sure if you’re going to have a place of work in a month’s time. You can prevent all of that by targeting your retraining towards an industry that is always thirsty for staff, always in need of good people to keep it functioning. No fighting for jobs for you anymore – not when you move into a sector which has far more jobs than it does people.

Coding

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You might look at that photo and want to run away screaming but, genuinely, with a little bit of learning that could be something you read as easily as you read this sentence.

Coding is the language of the future. It builds the apps you use, the websites that you visit. It’s also surprisingly easy to learn, as you quickly pick up the habit of associating the letters on the screen with what happens with a page layout.

The problem is that coding faces an uphill battle for recognition. At the moment, most people who work in the industry are self-taught out of passion and commitment. There’s few recognized qualifications in the subject. As a result, its recruitment levels are low and its skills gap is ever-widening. This is a situation that’s only going to get worse, meaning that experienced coders will – in years to come – become a valuable asset. So if you want security, entering an industry that is already understaffed (and set to be further understaffed in future) is a surefire way of doing it.

As alluded to, training yourself to code is rarely a simple case of going to a night school or taking an online degree program. Some elements of the subject will have to be self-taught and you have to be willing to tinker around, make mistakes, and learn from experience. You can begin the process right now – after you’ve read the rest of this flawless article of course! – and set yourself on a new path.

Could You Work In Coding?

An experience with languages is useful, though not essential.
Being tech literate helps but, again, this is something you can learn for yourself.
The ability to be patient is helpful. Coding is rarely smooth, so you have to be willing to problem-solve until you find the right solution.

Healthcare

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While there are a multitude of roles available in healthcare, it’s fair to assume that – for most of us already in an occupation – retraining completely to be a doctor is not an option. It takes a huge amount of time and, even when qualified, you have a way to go before you reach the specialist roles.

So unless you are willing to sacrifice that much time, it’s probably better to focus on the non-doctor side of healthcare. There’s still plenty of need for able people in these positions.

For example: healthcare assistants are the oil that allows the healthcare industry to run smoothly. It’s relatively simple to get qualified and there is always a need for willing entrants. For something a little more formal, there is nursing, which takes far less time than a doctor to qualified for and as Staffnurse nursing information can attest to, there’s always jobs available. There are a multitude of fields that might catch your attention in nursing, from working in the ER to becoming involved in the mental health sector.

As a final option, counseling is generally understaffed and is relatively simple to qualify for depending on the routes you take.

Could You Work In Healthcare?

The skills required tend to revolve around your chosen area of healthcare. It’s a good idea to aim for something at an educational equivalent of where you are now. So if you have a degree, look into nursing or counseling. If not, then healthcare assistant would be a good transfer point – and you can always learn forward from there.
A general desire to help those in need is, without a doubt, useful across all the skill sets.
It will help if you’re a people person; you can’t hide in a back office and hope to see no one during your working day!

Cleaning

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On the surface, cleaning appears to be a sector to avoid if you’re looking for a secure job. It has a reputation for being low-skilled, the kind of work that people do when they can’t find anything else.

This is massively unfair, however. Cleaning is an essential part of the economy, from those offering domestic services to firms that have multiple huge companies as their clients. The beauty of cleaning is that the workplace is always going to need it. Where there is an office, there is a need for an office cleaner.

While the work itself might not be hugely secure, you’re always going to be in demand. You could lose a job in the morning and have a new one secured that afternoon. It’s never hard to find cleaning work. So while the individual jobs might not be the most secure in themselves, the ability to pick up replacement or additional work with relative ease makes cleaning one of the most secure industries you can choose.

It also lends itself well to starting your own business, if that is something you have ever been tempted to try. You can do it with relatively low start-up costs and see where it leads you.

Could You Work In Cleaning?

Obviously, it helps if you don’t hate cleaning! Though many find it’s an easier task to manage if they are being paid for it.
While you can take qualifications, it’s not an essential, so it’s fairly simple to begin.

So if you are constantly worried about the long-term future of the industry that you’re in – and the impact it could have on your personal finances – then there is no need to be. Change things up for the better and you’ll have steadied the ship before you know it. The only question left is – what’s it going to be?

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Dealing With The Financial Implications Of A Car Accident

It’s the kind of situation that nobody wants to be a part of – and yet it is common enough that the majority of people will experience it at some point in their lives. Car accidents happen every day, and for a wide variety of reasons. It might be the result of a distracted driver, for instance. Or it could be due to alcohol, or some other substance. Whatever it is, dealing with an accident can be stressful. Something that works to make it more stressful is when you stop to think about the financial implications of it too. One of the things you will want to be sure of is that you come out of it with your finances intact. Let’s take a look at how you might ensure that this happens.

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Pay Attention At The Scene

The moments after the crash occur are hugely important, and yet it is likely that everyone involved is feeling stressed at this time. Although you might find that emotions are running high, it is sensible to try and pay attention to what it going on around you – and to do that properly, you will probably find that you need to try and calm down a little. The simple act of taking some deep, measured breaths is likely to work wonders in this respect. The more attention you pay, the more likely it is that you will be able to give an accurate report to your insurance company – and that will be more likely to result in them paying out for any damage that has been done.

Get Legal Representation

In some circumstances, it might become clear that you would be wise to get hold of some legal representation for yourself. If this is the case, the you should make sure that you shop around for the best lawyer you can afford. The attorneys you use really does make a world of difference to how likely you are to keep on top of your finances after the crash, so make sure that you put some effort into finding a decent one. Go for those who are nationally recognized for success as top trial lawyers, as this way you are much more likely to be successful in court. This can make a huge difference to the financial implications you experience, so it is worth bearing in mind.

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Avoid Arguments

It is a good idea to try and avoid arguing with anyone else who is involved in the crash. Although emotions may be high, ultimately arguing does not achieve anything, so you should do your best to keep a lid on your anger while you are at the scene. If you do argue with the other driver, then you might even find that they are uncooperative with your insurance company, and that’s the last thing you want when you are trying to limit the financial damage done by the situation. Do your best not to argue, and you will be in a much better position overall.

 


How to get car finance with a bad credit score

Car finance is becoming one of the most popular ways to purchase a new car in the UK, with consumers borrowing a staggering£31.6 billion last year to purchase a car, with a record breaking 2.7 million new cars sold.

Unfortunately borrowing money from banks and lenders can be difficult when your credit score is less than perfect. This is where bad credit car finance is a great option to consider when you are looking to buy a new or used car.

Types of car finance

There are different types of finance agreements to consider when you are buying a car so it’s important to find a finance deal that suits your needs.

A Hire Purchase agreement is the one of the simplest ways to purchase a car due to its simplicity. You choose a car, the finance company pay the dealership in full and you repay the finance company – as simple as that!Once all of the repayments have been made ownership of the car will be transferred over to you. Hire purchase finance deals are popular as you can benefit from smaller deposits and lower interest rates with this type of finance agreement.

Personal Contract Purchase is similar to a hire purchase agreement but there is a lump sum (known as a Balloon Payment) at the end of the payment plan that has to be paid if you’d like to keep the vehicle. If you don’t want to keep the car, simply hand it back to the dealer without any extra cost, provided you have stuck to the conditions that were established at the start of the contract. The car should be in a good condition and should not have exceeded the mileage that was set at the start of the agreement or you will have to pay for every extra mile you have driven. If you want to keep the car, you pay the balloon payment and the car is yours.

In a Conditional Sale agreement, it is established before the contract that you will purchase the car and have full ownership when all of the payments have been made. Similar to a hire purchase agreement, the finance company pays the dealership and you repay the finance company. The repayments are fixed for the whole repayment term and interest rate will be set by the lender.

A personal loan is also another way to purchase a car and gives you full ownership of the vehicle. A personal loan can be tricky to secure with a bad credit score, but it is possible to apply for a guarantor loan and have someone vouch for you if are considered a riskier customer to the lender.

How does my credit score affect my chances of being approved?

When you apply for any type of finance or loan, your credit score will be checked by lenders to determine whether you have kept up with payments on current and past loans, bills and mortgages. Lenders will evaluate your credit profile to assess how much of a risk you are to the lender, and gives them a good idea of your repayment history and spending habits. The higher risk you are, the higher your interest rates will be. A credit score that is 620 or less will generally be considered a ‘bad’ credit score and consequently you will find it difficult to secure car finance through a bank, building society or high street lenders.

How can I improve my credit score?

If your credit score needs some improvement, there are some steps that you can take that are easy enough to complete. First of all, if you are applying for finance and you aren’t on the electoral register, then you should do so. This doesn’t improve your credit score but it can improve your chances of being accepted by a lender as it allows them to trace your address and prevents fraudulent applications.

You should only apply for credit using one lender at a time, and if you’re refused finance, avoid the temptation to try other lenders. Whilst it’s true that different lenders have different score cards, it isn’t worth the risk of being declined again. It is better to take steps to look at your credit score, find out what needs improving and wait for a while until you reapply anywhere else.

No credit history?

If you have no credit history, it’s a good idea to take out a small credit card to build up a score. A good option is a prepaid credit card or a credit builder as they’re specifically designed to help build up credit. These types of credit builder cards will have a higher interest rate than ordinary credit cards so paying in full each month is always recommended.

Bad credit lenders

Bad credit finance lenders are specialists in securing car finance if you have been declined elsewhere. You should expect the interest rates for bad credit car finance to be higher than a finance agreement with a good credit score.
In most cases, brokers will perform what is called a ‘soft search’ on your credit file which allows them to match you with the lenders they work with, so that your chances of being declined by unsuitable lenders are reduced. Once they have determined which lenders are the most appropriate for your application they will forward it on to them for approval. You will need to provide any other documents they request and agree to the lenders terms before your finance is paid out. In general, you will have to provide a proof of address, proof of any income and have a valid UK driving license.

And by repaying your finance agreement on time, it will ultimately improve your credit score, and if you need to reapply for car finance again, you will be able to benefit from lower interest rates.

Refused Car Finance is a bad credit car finance broker, based in the North East of England. We specialise in helping people secure various types of car finance who have a poor credit score from a panel of lenders who we work with. Our goal is to make car finance as easy and accessible for anyone and everyone.

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Flying The Nest? Don’t Let Financial Worries Weigh You Down

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Moving out of your parents’ place is an exciting time in any young adult’s life. However, there’s no doubt that you’ll be feeling a lot of tension and apprehension also. Let’s face it; the bulk of those fears from financial elements too.

There’s no question that you will face some difficult moments as you learn to stand on your own two feet. But the challenge ahead needn’t be as daunting as you may think. After all, millions have successfully achieved that transition before you.

With these simple tricks to keep your finances in great health, you should be just fine.

Don’t Rush

As soon as you’ve decided that it’s time to move on, you may be tempted to start the process immediately. In reality, though, a little patience could make all the difference. After all, failure to prepare is preparation to fail.

Giving yourself a few weeks to save some money will make the process far easier. In the meantime, learn to be strict and get rid of the junk that you no longer need in your life. Otherwise, it’ll only end up in your parents’ attic. Similarly, this time can also be used to find cheap furniture and other items that you may need for the new home.

Timing is everything and avoiding immediate action will allow you to analyze the situation thoroughly. Without those precautions, you might be jumping into the deep end when you don’t have the facilities to keep your head afloat. Besides, it’ll give your parents time to adjust too.

Move Well & On The Cheap

The most important step of successfully flying the nest is to find the perfect home. When looking for a rental property, you may need to sacrifice some of the luxury comforts. As long as the essential facilities are in place, though, you should be just fine.

There are plenty of other costs to consider too, so any opportunity to reduce those expenses should be grabbed with both hands. These umovefree reviews show how it’s possible to find the perfect home without the need for breaking the bank. In turn, this will leave more money for buying any essential items that you may need.

As a first time tenant, you’re unlikely to have that many possessions. Rather than pay the experts, ask friends and family for help. You can always return the favor by doing work for them in the future.

Manage Your Life

Flying the nest isn’t just about finding a new place to live. It’s a chance to gain independence and grow up. To do that, though, you must take responsibility in virtually every aspect of your life.

If you’re going to become self-sufficient, it’s imperative that you take control of your career. Ultimately, a better career will open up far greater opportunities in your personal life. Moreover, it will set you up for a far brighter future from both a financial and emotional status.

Organizational aspects are equally crucial to your growth and development. Once you’ve found a home, looking for the best deals on various services will stand you in a far stronger position. Reach that point of financial stability, and you cannot go wrong.


4 Habits that Could Endanger Your Financial Health

Habits are the results of consistent actions wrapped into the very fiber of our existence over time. Habits can make or mar people because a habit tends to make you act on ‘autopilot’ without giving much thought to your actions. Interestingly, some habits tend to have a direct effect on your financial health. Of course, you probably know that developing some habits such as saving money is good for your financial wellness. However, this article provides insight into four seemingly harmless habits that could endanger your financial health.
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1. Not saving enough money

Not saving enough money is probably the deadliest habit that could hamper your ability to create wealth and ensure your financial security. If you don’t learn how to save up money, you’ll most likely be living from paycheck to paycheck. In fact, someone that saves 30% of a 4-digit income might end with a financially secured retirement than someone with a 6-digit income without savings. However, many people tend to discountenance the value of small consistent savings in helping them build a life of financial freedom. Of course, saving $500 might not look like much; yet, $500 monthly saving with an 8% annual return will net your $1,078,176 in 25 years.

You can’t start saving too early; in fact, you should start saving up money as early as possible in your career. If you haven’t been saving up money in the past, it is never too late to start saving money and you should start finding ways to prune your expenses now.

2. Being afraid to take risks

A seemingly harmless habit that could wreak havoc on your finances is being afraid of taking risks. Many people save up money, but the fear of taking risks often incapacitates them from investing the money. The fear of taking financial risks is a learned habit that you acquired because you don’t want to lose your money. However, not investing savings is a guaranteed way to lose money because inflation will erode the value of your savings.

In other instances, you might need to embrace the entrepreneurial risk to start a business or leave the security of your current job to join the next Apple or Facebook. In simpler times, you might need to take bold financial steps such as getting a loan to remodel your home before putting it up on the market.

3. Ignoring your health

Health is wealth sounds cliché; yet, the fact remains that your financial security can be seriously jeopardized if you fail to take care of your health. Many people chase wealth at the expense of their health only to spend a decent part of that wealth on drugs and surgical procedures to regain their health. Of course, you might need to be hardworking – with 80-hour work weeks and 4 hours of sleep each night; yet, you’ll need to remain healthy in order to work and grow your wealth.

You can quit risky habits such as excessive consumption of alcohol and you can also leverage free preventive-care programs guaranteed by the government to stay ahead of potential health challenges.

4. Keeping up with the Joneses

Your finances are likely to run into troubled waters down the road if you have a habit of trying to keep up with the Joneses. Keeping up with the Joneses is an unhealthy financial habit that forces people to live beyond their means in order to put up an appearance of being rich or being financially buoyant. Ordinarily, spending more money than you earn is a recipe for financial disaster because it could get you into a vicious circle of racking up debts on things that have little or no value beyond the initial high that comes after the purchase.

To prevent yourself from falling into the trap of keeping up with the Joneses, you might need to draft up a budget for how you spend money. More importantly, you’ll need master your emotions so that you do not discard the budget every time you see a new shiny toy in the market.

 


Is it possible for millennials to save money in 2017?

Being a millennial, you will always find yourself on the receiving end of financial advice which either seems over your head or something apparently impossible. Majority of the personal finance articles don’t take into account the unique state the current generation is going through. Around a quarter of 18 to 34 year olds have a bachelor’s degree but this degree comes with a cost. A staggering 75% of recipients of bachelor’s degree have taken out student loans and their median debt hovers around $35,000. In fact, as per a recent survey 35% of recent graduates would even love to sell off their body part in order to get rid of their debt.

Given these statistics, it’s no surprise that millennials are having a tough time following financial advice. But what exactly can they do in order to save their dollars? Here are few tips that they can follow.

? Either move back home or get a roommate

Even if you fall for a nice luxury apartment, don’t get it for yourself as this is not the time to splurge. Instead look for roommates as splitting utilities and rent is one of the biggest ways in which a millennial can stay in his city, lead an average life and yet save money. Although sharing your room with others is an entirely personal decision which you may not feel is right for you, but at the end of the day, when it comes to financial benefit, it is something that’s undeniable.

? Get yourself a low interest rate credit card

When used in the right way, credit cards are more like valuable tools which help you build credit and offer you practical and useful money management skills. There are numerous reward credit cards which offer benefits like redeemable points for cash back and travel but making such cards work takes diligence and planning. If it’s your first card, make sure you choose one which doesn’t allow you to accumulate lot of interest rate. Also remember that the perks won’t be worth if you only use the card for emergencies.

? Skip the Starbucks outing

There is just something great and nice about Starbucks which you think you can’t give up. But no, this is also something that should be stopped immediately. Cutting down on all your money-draining habits is pretty hard but you have to start out small and gradually move towards the bigger options. If you could even save $1000 in a year, that is even a good option for you.

? Automate your accounts

Another way out is to automate all your accounts. If you are not much habituated with saving, put your accounts on an auto-pilot so that you can save enough without having to remember the date of saving. The pre-fixed amount will automatically be transferred from your checking account to your savings account.

Therefore, if you’re wondering about the ways in which you can save money despite being a millennial so as to stay on the right financial track, take into account the tips mentioned above.

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Helping millennials with their personal finance – The biggest obstacles on their way

Since the past generation, there has been a lot of ink that has been spilled about the grave financial situation of the millennials. As per statistics, this generation is debt-laden, underemployed and has saved way less money as compared to what the Baby Boomer parents saved at the same age. Articles which were previously written on the financial woes of the young generation have always reiterated the fact that millennials are lazy and they’re narcissists who have brought the issues themselves by not being hard-working, ambitious and independent.

If you’re a millennial who is reading this post, you must be eager to cross-check whether the problems that you’re facing are similar to that of others. Well, this is why we list down a few fiscal challenges faced by millennials.

? The income of millennials is stagnant enough

The recession of 2008 did not only hit the millennials the hardest but recovery hasn’t benefitted them at all. Research reveals that the millennials are earning at least 20% less than both the Generation Xers and Baby boomers. For the young generation, inflation-adjusted wages are falling since long time before the recession and this has lead to the deterioration of well-paying jobs and less participation of males.

? Millennials are heavily saddled with debt

If you are aware of the bigger picture, you would know that the education costs have skyrocketed like never before and millennials are starting off as adults being the most heavily-debted generation. Not only are the graduates saddled with hefty amounts of student loan debt but they are also having enough amounts on their credit cards. Student loan debt has the power of dragging down the entire millennial generation and education debt is perhaps the biggest debt among the generation.

? Majority of millennials are economically dependent on their parents

In spite of being in their 20s and 30s, the millennials still rely heavily on the income of their parents for meeting their daily necessities. Recent Pew Research data showed that increasingly large numbers of young adults aged between 18 and 35 (including 40% of young men) are living on the income of their parents and this figure is currently the highest since the 1940s.

? Millennials are financially too fragile and vulnerable

Due to their stagnant income and huge loads of debt, there are many millennials who still don’t have an emergency cushion to fall back on. As per the Washington post survey 67% of millennials would have extreme difficulty in being able to cover a sudden expense of even $500. PWC, in another survey found out that 35% of millennials regularly overdraw from their checking accounts just because they’re falling short from one paycheck to another. Moreover, since most of them rely on the income of their parents, they turn to alternative sources like pawn shops and payday loans to meet their unpredicted expenses.

Keeping in mind the daunting signs mentioned above, while some millennials have embraced pessimism and hopelessness, there are some others who have taken this in a positive sense. They are trying their best to cope up with such challenges in their best ways possible.

Image source: https://pixabay.com/en/money-cash-dollars-pennies-coins-29047/


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