5 Financial Mistakes of the Millennium Generation

Millennial or commonly referred to as Y-generation are those born between 1980 and 2000, people who are known to be the easiest to learn even though they are a bit lazy, as they grew up in a time of technological sophistication today. Growing in an era with more focus on protecting self-esteem, these people often claim that they are unique, special and no one like them.

Most of the millennial have entered the productive age. They have jobs, earn money and are financially independent. But most of the millennials do not really understand how to manage their finances well. There are five mistakes that millennials often make in managing their finances to avoid.


# 1 Not Doing The Monthly Budget Well

When earning income, usually do not do the planning and budget well. As a result of the lack of planning and lack of budget, the most common is the bigger pegs than the pole, the greater the outlay than the income. The income they get, they use for their wishes.

Sometimes the earnings are only up to mid-month so they will start to skimp at the end of the month (or commonly called the old date). Therefore, the millennium is very difficult to save because there is no allocation of savings. Most of them think that saving will be done if they still have money left over after being worn. In fact, the income is always used up.

# 2 Prioritizing Lifestyle Rather than Saving

Lifestyle is the main reason of the millennial so they will be more concerned with spending their money on lifestyles rather than having to save. Millennials will be more prioritized to 'hang out' at the cafe just to enjoy expensive coffee with friends or just try new foods at a restaurant so as not to be called out of date.

Many are also tempted to buy products that are being widely used or the latest products just to be viewed by others. Products such as gadgets, clothing, shoes, bags, and other products that are not really in line with their financial condition.


# 3 Owe To Consumptive Things

Since lifestyles are the main reason for the millennia, most of them follow a lifestyle that is not really in accordance with their financial condition. This resulted in most millennials accustomed to owing. They owe for consumptive things in order to follow their lifestyle or the environment they want.

Many of these Millenials use credit cards to meet the needs of those who cannot be covered by their financial condition, or in other words, owe by credit card. Therefore, many are in debt credit card debt.

There are also those who owe only to buy a certain motor or car or certain gadgets, to follow the existing trend. The installment is the most favorite of these millennials. Though the installment means they have to pay the debt and interest on the debt.

# 4 No Thinking of Financial Security

Millennials mostly do not think about the importance of having emergency funds and insurance. They tend to think about how to make their money grow fast and quickly get rich, so they are easily tempted by very risky investments even including the bunch of investments that are often offered in the community.

Though should invest should be planned and not easily fooled by Fake investment. Therefore, they tend to use all their remaining funds for things that can make them get rich quick. As a result, their investments often fail. Therefore, many millennials are afraid of investments.


# 5 Rarely Think About Long-Term Financial Plans

Millennials often go through life without thinking of long-term financial planning such as old-age funds or other future funds. They have the thought of 'let it flow' or 'YOLO (You Only Live Once)' which makes them think that it's better for them to enjoy life now than to plan their future.

Yet unknowingly, the increasing age, their needs will increase, coupled with the inflation, but their productivity will actually decrease. If long-term financial planning, such as old-age funds, is not prepared from the day they are young, it will be even more difficult to prepare them later.

Organize Your Finances Before The Money Manages You

As a millennium, it is better if we do not make the above mistakes. It would be much wiser if you manage your finances properly and correctly. As millennials, we live in a technological era where we can learn many things through the internet. You can learn how to manage finances better, so you have healthier finances. Because if you do not manage your finances, then the money will govern you.