It can be exhausting to build a budget, spend your money wisely according to the budget, and pay your bills on time, especially if you’re a millennial without a lot of expendable income and burdened with financial commitments student-loan debt. But with some proper planning, thinking about your finances does not have to be nightmare-inducing. It’s not difficult to create the tools that you need to help you achieve what you want in life, but the sooner you start, the better off you’ll be. In this article, we have compiled some useful tips for Sri Lankan millennials to make the most-fullest use of the cash they are working with.
In this article…
- Make savings a priority
- Get out of debt
Make savings a priority & a habit
Saving can seem difficult if you are just getting started in the real world. You’ve got bills, regular expenditures, special functions, and maybe a couple of trips to the mall. When it comes to saving, you need to figure out where you can cut costs, even if it is by a few rupees a week. The easiest way to do this is to begin monitoring where your money is being spent. That way, you can make adjustments and set targets around your spending. That will allow you to immediately start saving without having to make more money.
“The very first step towards saving is to make up your own budget statement at or before the beginning of the concerned period since your income and expenditures are mostly known. Allocate some cash for the unforeseen events and be prepared at the period beginning itself. It is advised to separate the excess funds before starts spending, possibly in a bank account or in an investment plan. These savings can be utilized for future contingencies or investment purposes. More importantly, your expenses should be planned and matched with your income level”…comments Mr.Pubudu, finance manager at Loanme.
Get out of debt
Paying off debt is a guaranteed return on investment. It’s best to pay off debts one by one, beginning with the debt with the highest interest rate. Focus your payments on that one, complete it, and then move on to the next one. It will save you money in the long run. If you have credit card debt, it might bother you for as long as you carry a balance. It is also important to avoid additional credit. Opening another credit card or taking a personal loan will only put you further in debt. If you need a car, consider buying a used car if you absolutely need one. Try leaving your credit cards at home if you are going out. You can also throw your credit cards away if you don’t have control over yourself, or you can give it to someone you trust.
The debt could arise as a result of:
- An unforeseen circumstance for which you were not ready with or
- Improper planning of your expenses against your income
If your income level improves, negotiate with your loan provider to shorten the repayment period by rescheduling loan tenure. If you can raise cash via low-cost sources than existing ones, make use of them to pay off high interest-bearing loans on priority. If the cash shortage still continues, always try not to have parallel loans/leases or mortgages of properties, says Mr.Pubudu. Make sure the payment of minimum monthly repayments as required by credit card service providers and settle all dues within the interest-free period. You can think of earning an income by renting out the same assets to 3rd parties which would set off-lease liabilities and interest.
Get a part-time job, freelancing, or side hustle
Millennials tend to show the greatest interest among many age groups and generations in seeking a career that gives them meaning and unburdens them with financial drags like college loans. One of the best choices for fixing both issues all at once is to get a part-time job or side hustle. Side hustles will help you raise extra money to reach financial independence faster. The best ones offer stability, maximize your in-demand skills, and pay well for the time you invest.
Mr.Pubudu suggests using your spare time after office hours or during weekends for engaging in part time jobs, freelancing, and side hustles. However, making sure of the mental and physical health is most important.