4 Ways to Practice Secure Money Habits
Millennials and Generation Y both face unique money challenges. These challenges have been made worse due to the COVID-19 pandemic which many nations have been unable to fully control.
The effects have devastated families, savings, and the financial resources of many families. We are faced with further retrenchments and decreased spending power due to salary cuts and job losses as the global economy contracts.
Worldwide, most industries have been impacted with manufacturing and travel and transportation severely so. Major economies like Canada and the USA have seen increasing unemployment rates. Companies with international staff like Uber, Airbnb, and Groupon have made mass layoffs.
So, it is only natural that questions arise about our money habits and what we can do now to improve our financial situation in the future.
Why you need to practise secure money habits:
You can manage emergency situations
Life is full of surprises and none as impactful in the lifetime of GenY and Millennials as the COVID-19 pandemic. But apart from global issues like the pandemic and economic recession, there are other smaller issues that can crop up that costs us if we are not prepared.
The death of a loved one who was the breadwinner. An unexpected fire in the home. Damage to a car that takes thousands to repair.
The smaller problems also have a big impact and so managing our financial health becomes important.
You are better prepared for retirement
You will not be able to work forever. And you perhaps are not going to want to. Don’t you want to be able to relax and enjoy life? Maybe even retire earlier?
That may seem impossible now with the global crisis. But if you start to learn better financial management you could. And that is only possible if you start improving your money habits today.
You can keep track of your money (and habits)
When you practise secure money habits, you can quickly pinpoint the bad habits that are draining your pocket. You can ensure you do not spend money you do not have or go into debt because you are not managing your funds properly.
Four steps to practising secure money habits:
Learn financial management
Budgeting, saving, investing, getting out of debt. These are all financial literacy lessons we need to learn if we want to improve our money habits.
Understand how to earn more money
Salary or wages alone cannot improve or financial standing. We need to know how to earn additional income without overworking ourselves and where the opportunities are for higher returns.
Diversify your earnings
As the 2020 pandemic has shown, you cannot rely solely on a salary or one source of income. You need to diversify your portfolio to take hits and to take advantage of different opportunities.
If you are trading for example, you can learn both forex and stock market trading so you can spread your risks and your gains.
Save and invest
These two terms are not the same. As Investopedia explains it, the level of risk between the two differs. Savings means you have access to your funds and are less likely to lose it. Investment on the other hand are long-term strategies, with a higher possibility of loss but also higher returns than savings.
You need a healthy mixture of both if you are to practice secure money habits.
So, why do some people thrive during crisis and others do not? The answer is that they are better prepared. They have been practising secure money habits and can take advantage of opportunities when they arise.
So, get smart about money. Not just for spending but also earning and investing. Start by learning how to trade forex and in the stock market online at Diversit-e Smart Trading College.
If you don’t take care of your money, someone else will!