The younger generation is beset by major financial challenges – more so than their parents and grandparents endured. Though each generation faces its own set of problems, emerging adults are coming into their own on a financial landscape wrought with pitfalls. The employment environment, for instance, has many young Britons working, but salaries are stuck in low gear, with growth below the rate of inflation. Access to affordable housing is another sticking point for young workers striving to get ahead, with many unable to enter the housing market at this time.
Though the economic climate may be working against them, enterprising young people are not caving to the pressure. On the contrary, there are a number of things struggling Millennials can do to make their financial lives more manageable, including these productive steps toward a better financial outlook.
Understand Your Options and Manage Debt
Online resources furnish valuable tools for young people in search of financial knowledge. Whether you are comparing sources for no-credit-check loans or simply sorting out your existing financial obligations, budgeting sites and loan comparison resources can help you find the best types of funding and repayment options.
As a rule, expensive long-term debt from high-interest credit cards can be a drag on your finances, so costly financing deserves close scrutiny. You’ll also pay a premium for payday funding, but the loans are designed for fast repayment, so they can be quickly cleared from your debt load.
A strong credit rating helps open doors to affordable financing, so building and protecting a favorable credit score is a must, regardless of your age. If you’ve already taken-on a substantial burden or suffered credit consequences from failed repayment, addressing your most expensive balances and restoring your creditworthiness are top priorities.
Make Progress One Small Step at a Time
Even if you are living from paycheck to paycheck, it is possible to make strides in the right direction. Saving large chunks of cash may be difficult, but putting by a little each month carries you closer to your financial goals, so even small savings are worthwhile. Small savings victories are also good for morale, keeping you from getting too discouraged as a member of generation debt.
To watch your savings grow, take automatic withdrawals from your salary, if at all possible. The move helps reduce temptation and ensures regular contributions are made to your personal savings. Start with a small sum, set by monthly, and adjust the level upwards as your income and outgoings allow. Try to maintain the program without interruption, but if an unexpected expense does require immediate attention, resume your savings protocol as soon as possible, once the matter is resolved.
If your financial understanding lags, learning about pensions, investing and taxes helps bolster confidence and gives you the tools needed to make the most of your money. Each small victory fuels your next move, until you’ve ultimately built enough financial momentum to sustain yourself and move beyond things you once saw as insurmountable hurdles.
Get the Help You Need
Reaching out for help is nothing to be ashamed of. On the contrary, members of every generation have occasionally found themselves in need of a financial lift.
Help comes in many forms. If you need cash in a hurry, leaning on mum and dad for a bridge loan might be all that’s needed to get free from a tight spot. And if a longer-term fix is in order, a family member might be able to help, serving as a guarantor for a personal loan.
When advice is needed, several charities are available to help; offering financial education and sharing solutions you can use to move beyond difficulties. The organizations stand ready with up to date information about pensions and retirement, as well as strategies for reducing household debt. Many noted resources are also made available online, providing accessible answers to common questions about personal finance and other money matters.
Wider economic trends influence outcomes for every generation. But in the face of adversity, it is up to each individual to make adjustments and manage money accordingly. Many young Britons are doing just that, using knowledge and perseverance to get ahead, despite economic limitations.