Before the pandemic struck, Millennials were already facing financial challenges with steady work sometimes hard to come by and housing prices often out of reach. The current situation is adding to the complexity that those currently in their early 20s to late 30s are being forced to navigate.
Fortunately, there’s plenty that Millennials can do to shift their finances in a positive direction – even in the midst of the ongoing crisis – and position themselves to thrive financially in the long term.
For a start, it helps to go back to basics.
At 28, Alex is a few years into his career as a UX designer. He lives and works in downtown Toronto, where he usually makes the most of the city’s lively restaurant scene and nightlife (or he did, pre-COVID). Living close to the action for a minimal commute and maximum time with friends is important for Alex, so he’s saving up to buy his first condo in the city.
Alex is fortunate to have a job when so many across the country are currently out of work. His biggest challenge is that he’s fairly erratic in how he manages his finances. While he has a savings account where he sets aside money when he can toward a condo down payment, he doesn’t have any investments to speak of and racks up large credit card bills each month.
He’s clear on the lifestyle he envisions for himself in the years ahead, but not on how to achieve it.
A clear, simple plan
Alex is in a pretty good position, but he could be doing a fair bit better with a few strategic changes to his financial habits. And while we may be on the downslope of the current pandemic, applying long-term thinking to his money can put Alex in a better position to ride out future bumps in the road.
If Alex’s situation sounds familiar, here are three things you can consider to get on a better financial trajectory.
- Keep it simple. Financial planning doesn’t have to be complicated. It can be as straightforward as figuring out how to set aside a bit of money each month to pay off debt and make small contributions to an investment account. With a simpler plan, you’re more likely to stay on track since you’ll understand what you’re doing and why you’re doing it.
- Gain clarity. It may feel like everyone but you has their finances in order, but the reality is that many people have financial blind spots. If you’re feeling uncertain, one the of the best things you can do is ask questions and seek out advice.
- Start early. You already know that the sooner you start saving and investing, the better. What you may not realize is that even small amounts can make a huge difference over time, and that it’s never too late to start.
Putting in place a clear, simple plan can be beneficial for anyone who’s struggling with financial uncertainty. If you’re stressed out by the current situation and worried about the future, this is likely a good place to start.
Get on track
This pandemic will pass, yet new challenges are almost certain to arise in the years and decades ahead. For Millennials, living your desired lifestyle requires a proactive approach to ensure your finances can weather any future storm. This means going back to basics with a clear, simple and effective plan tailored to your unique needs.
If you’d like to discuss your financial goals and gain clarity on how to achieve them, Rubach Wealth can help. Contact us today at ww.rubachwealth.com
Together, we got this.
This blog post is part of Rubach Wealth’s Back to Basics series highlighting how focusing on financial planning fundamentals can help you stay on course toward your long-term goals during these uncertain times.