Making good money but you are unsure of what should you do with it? Does your salary fall in the six-digit bracket and still you feel you haven’t saved enough? You have talent in abundance and you earn high appreciation as well as ample money. Don’t worry, like others you fall into a group where masses are unaware of things they can do with their money. Not one but everyone around now looks for avenues that pay them good. Change of lifestyle and an urge to explore new things have instilled millennials to make plenty of money. But not many of them are equipped with ways they can manage their finances.
These are the 7 things millennials should do with their money:
Unburdened economic commitments such as debts or loans: Plan and get rid of all your debts. Even before saving money, it is important that you pay off your current debts that include your credit card bill. Don’t miss on your education loan. Always keep a track of the amount you have paid and the remaining balance. It will help you plan your money flow.
Secure yourself with a health insurance policy: It is a common myth that a health insurance policy is for middle-aged or older people. When young, no one feels the need for a policy. But life is unpredictable and you never know when do we feel the need for health insurance. Buying health insurance at an early age is more beneficial. For every claim-free year, you earn a cumulative bonus that impacts the Sum Insured. The cost of treatment is escalating which can be managed easily if you have an insurance policy.
Also, when you buy a policy early, the waiting period for several diseases will not apply by the time you would need the policy to play.
Delve into taking a trip around the world: Explore the world and that’s what we are here for. Youngsters like travelling especially with their friends. Visiting new places and meeting new people is different learning altogether. Save money or rather make a saving in this head so that you don’t have trouble managing your trips.
Save money to clutch the crisis: In the time of distress, no one will help but your money. You should start preparing yourself for such emergency cases by creating a separate fund for yourself. Accidents and other unfortunate events do not alarm you before they happen. Saving money for such turning point crunch will save you from asking for financial help from people.
Enjoy expensive mobiles but secure it with insurance cover: Don’t ignore this. Owning a mobile now is more than a necessity. The expensive ones define status. Now, thousands of people willfully spend lakhs on buying expensive mobiles. Millennials are dependant on these gadgets to complete their daily chores. And that’s fine if we need to keep up with the pace of technology and development around.
But the other thing you should be wary of is to buy a mobile insurance cover. Like your home, car, jewellery, and other belongings, a mobile should also be insured. The price of your mobile is an obvious reason for you to buy a protection cover. If it is lost or stolen, everything would be gone in just a few seconds.
Think of higher returns. Invest in Mutual Funds: You must be aware of increasing your income by some percentages. Decide a share of income that you will invest in mutual funds or other bonds. Though it comes with some market risks, still shelling your money with other investors will be wise. You should not worry too much, as these mutual funds are managed by experienced professionals. Investments in mutual funds will yield you higher benefits. Also, know that these funds are taxed in a way that it does not minimize your returns.
Put yourself to test. Taste the life: Were you passionate about anything in life but could not pursue it because of less money? Life is about living it to the fullest and trying new things. Find out how can you go after your passion and kick start with it. You got to manage both your time and money to make a meaningful living. Other new things you can try could be buying a new vehicle, buy a new home, and write-off donations to needy.