A recent American Express poll shows that achieving certain financial objectives is at the top of Gen Z and Millenial's lists this year. Fitness goals came in second at 50%, and mental health goals came in third at 48%. However, all these goals go hand in hand.
Your financial well-being has a big impact on your general mental health. It’s important to remember, though, that being in a solid financial position is not the same as having all you need to maintain your lifestyle at the moment; rather, it is the result of knowing how to manage your cash flow and how you spend your money.
1. Develop Your Savings
The most popular financial goal for millennials and Gen Zers in 2024 is to save more money, according to nearly 60% of those surveyed.
It is highly suggested that you set up automatic savings by having a set amount of money deposited into your savings account regularly. With this, you can start making plans for your money.
That being said, the type of account you choose can also change the result. Start with a high-yield savings account and learn how it works. This is the most important piece of information that any financial counsellor can provide. In times when interest rates are high, a high-yield savings account can be a great and safe way to grow your funds.
2. Pay Off Your Debts
In 2024, Gen Z and millennials said that paying off their bills was one of their main financial goals. That shouldn't be a surprise, since it's getting harder and harder to pay off high-interest loans since the Federal Reserve started raising rates in 2022.
Depending on your situation, there are different ways to pay off your debt. You could put your debt on a credit card that lets you transfer the amount. For the first few months, usually up to 21 months, these cards have no interest rates. This lets people pay off their debt without having to pay any extra interest.
Some people who have been paying down their debt can start putting all of their payments toward the capital by transferring their debt to a credit card with 0% interest. This works best if they have good credit and have been making payments on time.
After that, you should make a pay-down plan that you can stick to. When looking for a card to roll over a balance, keep in mind the fees for the first balance transfer as well as the length of time the 0% rate of interest lasts.
The snowball and the avalanche method are two other popular ways to start getting rid of debt. The snowball method pays off small balances first, and the avalanche method pays off the debt with the highest interest rate first. In both cases, you pay the minimum amount on all of your bills every month.
3. Don't Go Over Budget
Budgeting is an important part of any financial plan, and 41% of young and Gen Z respondents agreed—they said they had to stick to their budget no matter what. Sticking to a budget depends on how easy your plan is. You can use budgeting apps, spreadsheets, or even pen and paper.
You should be able to understand the budget, and it shouldn't be so hard that you won't take the time to check it often. When you make your budget for the first time, look it over every week. If you check your budget often, you'll get used to the way you spend your money and know when you're spending too much on something like food.
As you get better at making choices and breaking habits, you won't have to look at your spending as often. Once you've gotten everything in order, you can cut back to every two weeks or every two months.
It’s Not All Doom and Gloom
Financial management means an awareness of how you budget, save, and invest. However, it’s crucial to maintain a work-life balance for your mental well-being. Taking part in the hobbies that you love or simply relaxing through various forms of entertainment goes a long way. But even as young adults engage in this, it’s prudent to have some planning around finances.
Some online entertainment options may require funds to enjoy. A good example is video games, with buy-ins and tournaments being available, it’s necessary to set up a budget for it. Another example is playing at online casinos. Playing casino games such as slots and table games like blackjack and roulette can be exciting but can also dig into your finances.
Even though
playing on real money casinos can be potentially lucrative, you must approach it from a “having fun” perspective rather than a “money making” perspective. Nonetheless, online casinos are a fun way to unwind after meeting your financial goals.
To have an overall fulfilling life, it is crucial for Gen Zers and Millennials to meet their financial, health and social needs in ways that are sustainable.
