What are the money-making millennial habits that can help you change your financial future?
The current job market is extremely competitive. Having a nine-to-five job and saving money in financial tools like an FD or PPF just won’t cut it anymore.
The millennials make up a large demographic and are at various stages of the workforce. This puts them at an advantage to stick to their roots and adapt to the changing times.
This blog will discuss three money-making millennial habits every millennial should adopt to survive and thrive in the dystopian money maze.
Save Before Your Spend
Before you find new income sources, you need to understand the meaning of saving your money. If you don’t learn how to save, no amount of money will be enough.
Saving money traditionally means setting aside a small amount and utilising it to start a savings fund. Although this is an outcome-oriented mindset, you need to concentrate on the process.
- Begin having a “no spend day” every month to understand your expenditures and how much you can save by simply not spending once a month.
- In the grind to make money, millennials often don’t have time to make their meals and end up ordering from restaurants. Set your mind to make food at least twice a week and see the impact it makes on your monthly costs.
- Set aside your income in an alternative fund like liquid funds. A liquid fund’s key feature is that you can withdraw money instantly as you wish, and it gives you better interests than a savings account. Additionally, withdrawing money when you need it will help you be more mindful of your spending and your financial capabilities.
Once you begin taking small steps like this, you have the potential to save 50% or even 100% more than what you used to and live a comfortable life.
Investing in High-Risk, Low-Risk, Non-Bank Instruments
You might say, “duh,” when someone suggests investments are key to being financially stable. You need to understand that time is the greatest multiplier in investment tools. When you are young, you have a higher risk appetite which means a greater chance of returns. Begin as early as you can with as little as possible.
You also need to invest smartly and not go with the tide. Listen to experts, read books, watch videos and make an educated decision for yourself. If you are investing in stocks, balance your portfolio. 50% of your investments should be with sold companies that dominate the market, and the risks are very low. 20% Invest in mid-range companies that have a high probability of scaling in the next five years. Another 20% should be in IPOs as they are a great way to buy shares at the initial stages and watch the company grow over time. Finally, invest 10% in risky companies that might have huge downsides, but if it works, you could earn more than 200% of your initial investment.
Learning, Reviewing, Changing
Inability to learn and grow with the changing times is the death of your professional and personal life. Stagnancy is a silent killer that creeps up on you after a few years when it’s too late to do anything. Say you invested in a mutual fund but 24 months down the line, it is not giving you good returns. Be quick to exit and reinvest.
As you keep trying new things and upskilling your current skill set, you will find new ways to earn multiple sources of income. Understanding your capabilities and potential will also help you manage your time better and prioritize your needs and wants.
Making it in the world and earning money is more than a job or a side gig. It is a lifestyle you need to adopt and constantly work on. You will face multiple obstacles along the way, and it is up to you to make the most of the situation.
We hope this article on money-making millennial habits helps!