8 Financial Moves for Female Millennials

by Annabelle B. content manager

Christine Romans in her “Money Guide for Millenials” states: “Women have so much to bring to financial relationship these days. For the first time in decades, women have the chance to earn more than men”.

Knowledge about money is crucial for any age. It’s just that in your twenties, you have got more financial opportunities, like applying for same day loans for everyone, getting one more credit card, etc.

But you should use your freedom smartly and start building the financial independence right now. If you want to have the roof over your head if you want to have food and clothes tomorrow, do the following steps today.

1. Start Saving For Retirement

You will contribute a small amount of money every month and perhaps won’t notice a big loss from the monthly budget. However, you will be responsible for your own retirement and have a safety cushion to fall back on when ready to retire. Consider whether you already qualify for the 401(k) or the IRA opening and start putting money there.

2. Save for the Future

First off, you have to know the financial goals. Just like with the retirement money, you will set aside a fixed amount monthly. The money you are contributing every month will eventually form the capital that could be spent on purchasing a car or own place and even start a business.

3. Set Career Goals

Imagine what goals you want to achieve as a professional. Break down that image into smaller aims and objectives to conduct every day. If you are still unsure, consult a career advisor on what career path you’d better take to get to your dream. Get ready that you may need to learn new skills, change workplaces or follow new directions to achieve the ultimate goal. Remember, that all your efforts will repay hundredfold in the nearest future.

4. Ask For a Raise

If you perform your duties well and you have picked up some new skills, you may ask for a raise and this way get closer to your financial aspirations. It may not be easy to prove your worth to the employer, but if you will, you also raise your price on the market. If having to change jobs in the future, you can hope for a bigger salary.

5. Always Budget

In order for the financial pan to work, you have to budget. It may be not so justifiable to do while you are single and you can see where the money goes. However, budgeting is the main tool to help you manage the money. Switch to the auto payments for the bills. Extract the money you contribute to retirement and insurance and see how much you can set aside for reaching your financial goals.

There are even apps that offer to calculate the sum of money allowed to spend in order to make smart expenses and avoid getting into debt.

6. Get Rid Of the Credit Card Debt

Before you can create a smart financial plan, you need to take care of the debt. Debt weighs you down and prevents from being financially independent. To cover the debt as soon as possible, consider cutting down on unnecessary expenses.

Christine Romans even recommends moving back home with your parents. If you spend like 60% of your salary on rent, moving back with your parents is a very smart move. This way you will either repay the debt faster or save just enough money to be able to invest in a couple of years.

7. Take Care of the Insurance

Apart from building an emergency fund, you must invest in the insurance and take care of your life. Health insurance will save you from going bankrupt if you’re suddenly disabled. Renter’s insurance will take care of the emergency expenses from your household (e.g. if you got robbed). Life insurance may take longer to be useful but having it you won’t leave your family in a lurch in case something happens to you.

8. Find Extra Ways to Make More Money

If you budget well, you may see how much money you waste every day. Spot the unnecessary expenses and cut back or eliminate them. If you make your own coffee instead of buying from a coffee shop, you will save up to 60$ a month. Don’t be into fashion trends that much - such an obsession may force you to spend more than actually earn. Look for good bargains and discounts and save up to 60% on clothes.

You won’t go far without a plan. Life may seem fun and easy now, but once you have financial troubles, you will see how hard it is to get back on your feet. The good news is that planning early helps anticipate any setbacks and make the financial goals much easier to accomplish.