The individuals who are a part of the millennial generation encounter various unique obstacles while learning how to develop into adults. One of these challenges might come when trying to figure out how to leave a financial legacy. Such a plan can pose a mountain so high that it seems impossible to climb. Luckily, there are strategies to help younger generations find financial success, such as proper preparation and planning.
Financial expert Scott Crockett, Everest Business Funding's Founder and CEO, is familiar with the generational problems that today's world holds. Below, he generously communicates several financial tips addressed to millennials.
Tip #1: Be Aware of Deposit and Withdrawal Ratio
A national financial literacy survey that was recently conducted showed that individuals between the ages of eighteen and thirty-four years old did worse in comparison to other age groups because of their high rates in late mortgage payments, overdrawn checking accounts, and struggle with medical costs. Those who have difficulties managing their finances can start digging themselves out of a hole by being more aware of how much money comes into the bank in contrast to how much money is spent.
Tip #2: Pay off Your Debt First to Save More Later
Tip #3: Set Rules to Stay Debt Free
For those who stay in debt due to the ease of swiping a credit card, it is time for a break. Creating boundaries to stay away from using a credit card is suitable for developing healthier spending habits. If using a credit card, it is best to pay it off immediately after using it and selecting a low rate card.
Tip #4: Create a Budget Accordingly
Budgets work, and they set people up for financial victory. An excellent place to start is by using the 50-30-20 rule as a standard budget goal. The 50-30-20 rule advises one to take fifty percent of income and put it towards things considered "needs" such as rent or a mortgage, bills, groceries, and transportation. The next thirty percent of income should go towards whatever a person wants or fun spending money. The last twenty percent should go towards a successful financial plan, whether paying debt off, adding to savings, or putting it in investments.
Tip #6: Start Making Smart Shopping a Habit
Saving money in small places can lead to big things. Small savings can come from choosing store brands over name brands, riding a bike over driving a car, or eating at home before eating out with friends to spend less at a restaurant.
"A millennial who can prioritize saving and smart financial choices over high-spending habits that generate more debt will find it easier and more feasible to leave a financial legacy later in life," said Scott Crockett, Everest's CEO.
Scott Crockett is the founder and CEO of Everest Business Funding. He is a seasoned professional with 20 years of experience in the finance industry. Mr. Crockett's track record includes raising more than $250 million in capital and creating thousands of jobs. Scott has founded, built, and managed several finance companies in the consumer and commercial finance sectors.