A recent study by Ameriprise Financial shows that millennial women are likely to feel stretched financially and are the most likely to have difficulty balancing the need to spend time managing money with other responsibilities. They also tend to be more driven by the present than the future when it comes to financial decisions (48% vs. 37% of Gen Xers and 20% of boomers).
If you wonder where all of your money went a few days after payday, youâ€™re going to have to make some changes. Here are four ways millennial women can get their finances in order.
- Monitor your money. Often times, immediately after pay day, the money is all gone and you wonder what you spent it on. If you can relate, then tracking your money should be at the top of your financial planning list. If paying for a professional financial planner is not in your budget, you can still keep a record of your income and how much of it you spend. Until you know whatâ€™s going out and coming in, it will be hard to move forward with a plan for your finances.
- Do it yourself. Itâ€™s natural to want to keep up your appearance, but weekly beauty regimens can be costly. Instead of spending extra money every week to maintain your polished look, try styling your own hair and doing your own nails.
- Develop a side hustle. You never know which way the economy is going to go, so you donâ€™t want to be caught off guard if you lose your job or have to take a pay cut. Find a hobby or something that youâ€™re passionate about, and then find ways to profit from it. This way, your finances can be secure at all times.
- Get the most out of your bank. Most banks offer a range of services structured to help you get the best out of your savings. Contact your bank to find out ways that you can build up your savings account.
Stay tuned for part two of this series. Weâ€™ll talk to Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial, about their recent women and money research study.