Five Financial Habits Of Millennials

Millennials face a variety of money struggles, from student loans to numerous expenses (let alone the fact that majority of them don’t have an income while they study is a challenge in itself). Here’s how the younger generation is making their money go the distance.

They Invest

You’d think that the fear of losing money, and the lack of investment knowledge would scare them off. Instead they embrace the need to invest. Millennials are confident that investing will allow their money to grow in value over time, even though the markets might take a knock, causing a few bumps in the road. Investing at such a young age means there is more time to accumulate large amounts of money. Although many opt for cautious investments, investing aggressively offers a high return. High risk means a greater reward.

The invest effectively

Millennials don’t chase the trends. They focus on investments that speak to their core values. It isn’t about outperforming the market and making large amounts of money in a short period of time, but rather ensuring that the money they are getting is going to a worthwhile cause, otherwise known as impact investing. “In the simplest terms, impact investing means being socially responsible about where you put your money. Instead of buying a particular stock or mutual fund because it has the potential to generate a big return, your investment choices are based on the potential to positively impact a specific social or environmental cause,” – smartasset.com

Careful with credit

Millennials are wary of credit cards and the negative impact it can have on their bank account and credit score. Their reluctance to use their credit cards means less debt, and more money saved. Schullman Research Centre found that 67% of wealthy millennials pay with cash so they aren’t tempted to whip out that card.
They believe you shouldn’t be spending more than you earn if you want to continue building wealth.

They are goal setters

It isn’t all about the present moment anymore. Millennials are aware that finances play a big role in their daily life, and therefore need to ensure they have enough to go the distance. They make long-term goals for themselves, that motivate, challenge and inspire them to stay on track.

They think like a grown up

Millennials are after financial independence and are determined to make a name for themselves in their respective field. Their parents are most likely coming close to retirement, and they no longer want to have to rely on their parents for money. The trend of moving out, getting married and starting a family at a young age is back, all which comes with hefty costs attached.

June 22 2018 By Noble Wealth Management Financial Planning