The world is currently run by people of a whole new generation. Referred to as millennials, people included in the group are often exposed to financial tips that could sound impossible to achieve. These four points below about how millennials should spend money are perfect examples of myths.
Rumours have it that successful millennials save enough money to own house
Being a homeowner and owning a real estate cost a lot of money and responsibilities. The Millennial Money Woman recommends three points before buying a home. One, do you have enough money saved for your own before the down payment? Two, the typical breakeven period for a person living in the same area is around 5 years or longer. Will you be comfortable to settle in one area for such period, or even longer? And lastly, do you really need a house or are you just being impulsive?
Your success is not measured by how many properties you own. Be wise with your money, and do what’s best for you with it.
Life insurances are not for millennials, fact or myth?
According to The Millennial Money Woman, life insurances are often belittled by most people. Why? Because they won’t be alive to receive the return anyway. Now, let’s try to change the misconception related to life insurances.
Yes, you might not need the insurance. If you live alone without no one to leave your insurance money, and such insurance will only weigh you down, then you may skip. It is a whole different case if you are the opposite.
Someone who has other individuals depending their lives on him or her, such as children, a spouse, or maybe a family member. This means they have other people to receive the insurance money, and the money will actually be needed.
Saving money can wait? No, it doesn’t
Never think of postponing saving money. Even when you are tight on money, try to save some. If possible, start investing earlier. Investment is not only a saving, it is another source of income. However, make sure you educate yourself on the matter before jumping into investing. Most importantly, make sure your money for investment is on the right hands.
Yes, you only live once. But will you really spend it recklessly?
Being young, it is only normal to have the urge to have fun with your money. Of course, it is not illegal splurge your money to have fun. However, you will also need to have limits. One useful tip from The Millennial Money Woman is to allocate around 10% of your annual income for “fun money”. Be committed to the savings and spending related to the “fun money” account, and have the fun you want to have while you are still young!
Read also: India: Legal Marriage Age for Women and the Economy
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