Surviving the Economy: A Guide for Broke Millennials
Recessions happen and economies ebb and flow. As a Millennial, are you prepared for the fluctuations currently expected for the UK economy in the coming months? If you are guffawing at the idea of being financially prepared, do not worry, you are not alone. Thousands of Millennials are in the same boat….the boat of being broke. This is the very reason for creating this guide for broke Millennials.
Tips for Broke Millennials
Broke Millennials populate the world. It’s a common belief among Millennials – according to CNN Money – that saving money for retirement or a “rainy day” isn’t a pressing matter. If this sounds like your take on saving, then it’s time for you to listen up. There might come a day where you find yourself in a financial pickle.
Follow the tips below to prepare for a recession and survive economic downturn.
Refinance your student loan and other debts.
Why? Well, during economic downturn and recession, interest rates can plummet. Lower interest rates mean good things for your cash-flow. You might think that there is not much student loan debt in the UK, but you would be wrong. According to UK Parliament Research Briefings, there are approximately 1.3 million students in debt in the UK. Student debt, at the end of March 2019, amounted to £121 billion. With same day pay-out loans, it is possible to get the cash you need quickly to refinance your debt, which of course, reduces your monthly instalments and ensures a bit more available cash-flow for you.
Live like a student.
This might sound a bit cryptic, but it is really not. Students have a reputation for living on the cheap and that is exactly what you should do when tough times strike the economy. Your financial comfort really rests on your spending habits, so it is time to get those under control. Opt to work-out at home instead of paying for a gym membership, eat home cooked meals instead of take out or restaurant meals, car pool instead of spending money on transport, share broadband with the neighbour instead of signing up for your own contract – and so on, and so forth.
Have your fingers in many pies.
While you may have a full time job or semi-permanent job, you should not limit yourself to just one source of income. Millennials are known for being innovative entrepreneurs, so now is your chance to shine. Make sure that you are good at your job (employees that are valuable to the business are rarely “let go”) and look into other income opportunities. Perhaps work at a local pub or restaurant, do part time dog walking or house sitting and so on.
Forego credit cards.
For many people, credit cards just seem like the natural thing to have, however, they do not have to be. Some credit cards, especially those aimed at younger people, have high interest rates attached. Of course, the increasing limits can also be a temptation to keep spending when you do not have the money. If you think that you need a credit card to build your credit rating, you are wrong. You can use a credit building loan in the form of same day pay-out loans to build a good credit rating. If you keep paying the loan on time or even before the due date, your credit rating will be positively impacted on.
Take advantage of rewards and loyalty programs.
If you are offered a reward or loyalty program card at a store, sign up for it on the spot. Getting a free pizza every now and then or getting cash back on a store card can really help you when you are fresh out of cash. Do not turn down rewards and freebies. They can have a positive impact on your finances, regardless of how small that impact may be. Every little bit of money-saving helps.
Surviving the economy does not have to be hard work. You do not have to be an experienced finance expert to understand how to get by when the economy is going through a downturn. As a Millennial, you have the forward thinking required to find innovative ways to save. Simply be cautious with your spending, be receptive to money saving opportunities and make sure that you are aware that a recession can come at any time. Make every decision with your finances in mind, get into debt cautiously, and ensure that you are ready and able to pay for your bills and expenses, and you should do just fine.