Money Management for Millennials: Helpful Tips and Insights

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If you entered the world between 1980 and 1996 you’re part of the “millennial generation”. You grew up in an age of abundance and innovation, with more opportunities in work, socializing, and leisure than previous generations. Cheaper goods and services mean less focus on buying a home, financial management, and saving for retirement, allowing more enjoyment of the present.

Career or a combo? 

That’s not to say you don’t face challenges. Increased employment casualisation, short-term contracting, and the threat of automation, can potentially threaten your job security. You could embrace a flexible career, mixing work with travel, raising children, or volunteering. Indeed, many millennials are discovering that the whole concept of work versus recreation is becoming blurred. A computer is now the primary work tool for many professions, allowing you to work from a spare bedroom in Berlin or Barcelona as easily as in Parramatta or Perth.

Medical advances offer a long and healthy life, allowing you to work as long as your health permits instead of planning to retire.

Is home ownership that important? 

Some of your peers prefer not being tied down to a mortgage and possessions, but if you haven’t bought a house yet, you likely aspire to the Australian dream of home ownership. Younger millennials face challenges, such as living far from work, that may require unacceptable compromises. But attitudes to long-term renting are changing. Australian culture and ownership structures do not yet support lifelong home rental, but enterprising millennials are likely seeking to change this. In any case, renting can be an economically viable alternative to buying.  

There’s an app for that 

You know where to find apps for various needs like finding a job, funding a venture through crowd-funding, borrowing through P2P platforms, finding a house or room, or even finding love. Connectivity and changing attitudes create opportunities, yet life is more complex for this generation than for previous ones.

Let’s talk about money 

Managing money is no exception. For a start, there’s the challenge of working out what the right balance is between funding a desirable lifestyle now and saving for medium and long term goals. Once that’s decided there are the questions of how to save and where to invest. The Internet is awash with information and advice, with much of it of a high standard. Navigating misinformation and dubious investment offers makes it challenging to discern quality financial management and advice.

Fortunately, help is at hand. We’ve made it our business to understand the wants and needs of all generations. There is more to life than saving for retirement and maximising entitlement to the age pension. If you’re a millennial seeking advice on managing your finances to make the most of life, visit our website and book a cost and obligation-free financial planning appointment or find us on LinkedIn, Facebook and Twitter, and contact us for a chat.

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