For Millennials and Gen Z members, financial independence can seem out of reach. Between student loan debt with high interest rates, expensive rents paid by entry-level positions, and need to find jobs that offer health care insurance, the country's youngest adults are facing financial disadvantages that previous generations did not experience at the same capacity. It is no wonder so many have resorted to moving back in with family after graduating college. But there is hope for these two generations.
We’re here to tell all of you Millennials & Gen Z-ers out there that financial independence is easier to achieve than you might think.
How to Be a Financially Independent Millennial or Gen Z-er
- Make Saving Money Your Number One Priority. Like, now. Whether you just have a basic savings account, or your company offers a 401(k), start contributing to those different ‘funds’ for emergencies, retirement, and other future expenses.
- Create a Budget For Yourself. The basic of all financial basics, budgeting is always going to be one of the most important financial tools you can use to your advantage. Strive to set yourself a budget – but also go a step further and attempt to understand your budget and personal flow of money.
- Stop Buying Things You Don't Need. Have a coffee maker at home or work? Use it. Find that you're only using your paid-streaming services like Netflix & Hulu and not your cable? Cut the cable cord. Shopping online because you're bored? Go outside and get active instead. These small lifestyle changes can have major positive impacts on your bank account.
- Stay on Top of Your Debt. Most Millennials and Gen Z-ers have accrued some debt from student loans, car loans, credit cards, etc. – the key to financial independence is managing it. Start with high-interest credit card debt that can affect your credit score if not paid off quickly, and move forward from there.
- Be Forward Thinking. Sometimes it’s difficult to plan ahead and escape the present, but when it comes to your finances, thinking about the future, setting financial goals for yourself, and basing your financial decisions off of these can have a large impact on your financial future.
Financial independence and prosperity don't have to be major headaches. Millennials and Gen Z-ers get a bad rep for being lazy, but we know that's not true. There are just obstacles in your way that need to be overcome. Follow our simple advice and you'll be on your way to financial independence in no time.