It takes more than just cutting back on avocados to make it financially in Australia. Here’s what the under 35s really need to know.
The new Deloitte 2017 Millennial Survey paints a less than rosy picture of the financial outlook for millennials in Australia – at least, from a millennial’s perspective.
It states that only 8% of young Australians (born after 1982 but before 2000) believe they will be financially better off than their parents.
However, there are several ways in which millennials can proactively tackle these concerns and start working towards a financial future which could match – or indeed surpass – that of their parents.
Use tech to help you save
Millennials have one up on their boomer parents in the tech stakes, and the smart use of technology can seriously help you manage your money.
There are literally hundreds of free apps available to help you track your spending, save, and invest.
Here are a few of them:
Pocketbook is an Australian app which lets you to track expenses and set spending limits.
Money Smart’s TrackMyGOALS allows you to set, plan, track and manage your savings goals and visualise your progress.
Expensify allows you to scan receipts and track time or mileage for tax deductions.
Set up a budget
The single most important step a millennial can make in terms of taking control of their finances is setting up a budget and tracking income and expenses.
This is because as soon as you start to see where your money is going – on takeaway coffee, on drinks and the pub, or on yes the ubiquitous avocado toastie – you’ll realise how much you can save by making a couple of small, but key, lifestyle changes.
Even as much as $5 a week in savings can start to quickly add up.
Setting up a budget is quick and easy and can now be done online, allowing you to add to your expense list when you’re out and about.
The Australian Securities and Investments Commission (ASIC) is a great place to start, with a free and user-friendly online tool.
Define clear financial goals
It’s never too early to start planning for your future. Indeed, the earlier you start, the more you’ll save and the quicker you’ll start racking up financial wins.
When setting your financial goals, the key is to make them achievable and time-bound.
With so much time to accumulate wealth over your lifetime, its also important to set yourself short, medium and long term goals, so you feel rewarded and satisfied throughout your financial journey.
Want to go on a trip to the States, or buy a new car? These might be your short to mid-term goals.
Want to have enough in the bank for a comfortable retirement? This is an important long-term goal which you need to start planning for now.
I’m still going to need some help
It’s normal for younger people to put their head in the sand when it comes to financial planning, but it’s wise to dig it out as quickly as possible and start planning.
If you need help in setting yourself up for a healthy financial future, come and talk to us.
There are many more ways we can help you set out on the path to wealth as soon as possible.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
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