5 Practical Money Tips for Millennials

Navigating finances can feel overwhelming, especially with mixed messages in the media about millennials’ ability to build wealth. A 2020 Bank of America study revealed that 75% of millennials feel uncertain about their financial future, with many worried about saving enough.

Sound familiar?

Here are five actionable tips to help you take control of your finances:

1. Start Today

The earlier you begin, the more you benefit from the magic of compound interest. Even small investments grow significantly over time. For example:

• Saving $1,500/month from age 30 at an 8% return can grow to $3.4 million by retirement.
• Waiting just five years could reduce your retirement income by nearly a third.

The takeaway? Don’t wait! 

2. Create a Plan

A clear financial plan is essential. Ask yourself:

• What are your savings goals?
• How much do you need to reach them?
• Should you prioritise paying off debt or investing?

A financial planner can help you set realistic goals and develop a roadmap to achieve them. 

3. Pay Yourself First

Make saving non-negotiable:

• Automate your savings or investments with direct debits.
• Build an emergency fund, then prioritise long-term investments.

Once you’ve met your savings target, you can spend guilt-free! 

4. Diversify Wisely

Spread your investments across industries and global markets with a low-cost, diversified portfolio. Avoid risky day-trading and focus on long-term growth. 

5. Take Risks, but Be Cautious

If you’re dabbling in cryptocurrency, NFTs, or single stocks, ensure it’s with money you can afford to lose. Keep speculative investments as a small part of your portfolio. 

Why Work with a Financial Planner? 

Even with these steps, a financial planner can help you stay disciplined and focused on your goals. They provide:

– Strategic portfolio management and diversification.

– Guidance to avoid costly mistakes.

– Long-term support to grow and protect your wealth.

Take charge of your financial future today. Reach out to the experts at Oreana Private Wealth for tailored advice and a plan that works for you. Let’s build your wealth together!