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Stressed-Out Millennials: Strategies for Coping With Student Debt and Other Pressing Issues

3 May 2017 No Comment

Being a millennial isn’t all smiley-face emojis and fair trade soy lattes. Student loans, a rising cost of living, an uncertain economic and political future and the struggles of finding a job are stressing them out. In a 2016 survey, 64% of millennials said they were stressed about finances – a number higher than that of other generations.

Although this is a somewhat tense time in the lives of many millennials, there is hope. If they follow these steps as they get themselves established, they may find they find they’re feeling more secure about their finances and manage to shed some of their debt.

Create a Plan

The first step to working with financial stressors is creating a plan. Millenials (and everyone else for that matter) should create a budget and stick to it. They should set goals and limits for how much they’re willing to spend on certain areas like food, entertainment, and travel and keep track of their finances rigorously.

Use Auto-Pay

If you find that you have trouble keeping track of when bills are due, it might be a good idea to start using an auto-pay function wherever it’s available. This will help you to keep your credit score at a healthy level and make sure you don’t get behind on any payments. If auto-pay isn’t available, set a reminder on a phone or calendar for at least a few days before the due date.

Get Thrifty

It can be tempting to spend money on things you don’t really need especially after you get your first real job and suddenly find yourself with more money than you’ve ever had before. Don’t get carried away though. Getting thrifty with your spending can leave you more money to pay off your debts and help you achieve financial freedom.

Check out a thrift store first if you need new clothes. Stay in every once in a while instead of going out. Cook more at home and shop at discount grocery stores.

Use Less Credit

Credit cards can be helpful, but if they’re not used correctly, they can make financial situation worse. If you have credit card debt, work on paying off one card at a time. If you find you have trouble with credit card spending, get in the habit of using cash or a debit card for everyday expenses.

Invest in Your Career

You may just be starting out with your career, but it’s never early to start investing in your future. Learning a new skill on occasion can help put you ahead. You could even consider an advanced degree. You may have to put forth an initial investment, to upgrade your career, but you might find that it’s worth it. If you need help, it’s possible to get loans with bad debt.

Additionally, if you’re not happy with your job and how your employer treats you, feel free to shop around. You might want to make sure you have a new offer nailed down though before you quit your current gig.

Start Saving

Although it can be tough when you’re just starting off your career and struggling with debt, you should always be saving. Commit to putting aside at least 20% of your income for emergency funds, retirement and other future expenses. But the more you can reasonably save, the better!

Managing your finances can be stressful especially when you’re just starting your career, dealing with student debt and worrying about the state of the economy. You can only do your best, though, to secure your financial future and get out of debt. Create a budget, stay on top of payments, start saving and invest in your future, and you’ll be on the right track.

 

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