‘Millennials,’ ‘financial planning’, and ‘wealth management’ are words not often used in the same sentences. Generation Y is known to spend on ticking off goals from its bucket lists.
But if the pandemic has taught the world anything, it is to be prepared for any storm. And, as a millennial, there’s no time like the present to start financial planning for your future goals. Read on to learn some tried-and-tested rules for sorting your finances.
1. Map out your financial goals
The first step in millennial wealth management is to think about your aspirations financially. Ask yourself where you want to see yourself in the next few years. Now, prepare a goal-based financial plan. This means dividing your goals into short-term goals like a vacation or buying a vehicle, medium-term goals like purchasing property or marriage, or long-term goals like retirement.
Then, look at your current financial situation to have a clear idea of how to begin saving for these goals.
2. Spend smart to save smart
From travelling to ‘gram-worthy locations to purchasing the latest gadgets, millennials love to spend. But, instead of digging into your savings every time you plan a trip or add a big-ticket item to your shopping cart, you can opt for instant personal loan. Why, yes! With personal financing, you can quickly access collateral-free funds with no restrictions on their end-use.
What’s more, you can repay the loan amount with EMIs over time with personal loan EMI calculator rather than spending a large chunk of income at once. This will encourage you to set aside a portion of your earnings every month and keep a tab on your finances.
Additional Read: 5 biggest fears related to financial planning
3. Follow a monthly budget
When planning for your future, you must maintain a monthly budget. Think of it as giving yourself a monthly allowance and try your best not to overspend. It will help you save funds for emergencies and your short and long-term goals.
4. Pay off pending debts
If you have multiple debts from education loans, credit card dues, unpaid bills, etc., don’t let them pile up. Consider consolidating the debts with personal financing. Instead of keeping track of several EMI dates, clear your outstanding dues in one go.
Since personal finance is available at flexible tenures, you can comfortably repay the loan to boost your credit score and improve your personal loan eligibility for future approvals.
5. Invest to grow your wealth
Here’s a fact, the sooner you start investing, the quicker you build your retirement kitty. So, if you are thinking that investing for retirement, which is 25-30 years away, can wait, you are wrong! After all, your money needs time to grow. So, start exploring investment avenues now.
To sum up
Today it is essential to get a grip on your finances. You can also seek help from financial planners for millennials if you don’t know where to start. Meanwhile, if you want to tend to an unexpected expense or create a financial cushion to fall back on, opt for personal finance with Tata Capital. Check your loan eligibility and enjoy instant disbursement. Get in touch today!