5 financial goals young people should take to 2018
Given the current financial climate of the country, it’s more important than ever for young people to establish financial goals. Without a roadmap, your bank account can sink like the Titanic, and you might even take on debt, like water on...the Titanic.
To avoid crashing into a financial iceberg, let’s set some financial goals for 2018, shall we? Here are considerations as we head into 2018.
Learn self-control
Impulse buying is common and a huge problem among young Canadians. Do you really need that pair of jeans or the latest iPhone? You may feel good about buying new clothes and electronics, but remember the joy is only temporary.
Heck, you will be facing misery and woe when you get your credit card bill. A 2012 Bank of Montreal survey found that Canadians spend on average $3720 each year on impulse buys. WOW. Really? $3720 every year just on impulse buys! Don’t be one of them. Learn and practice self-control, you will find it easier to keep your finances in order.
Attack your debt
Young people, especially millennials, are facing huge debt. Many Canadian millennials use their credit card with ease and no regrets. This study done by Manulife Financial last year shows that thirty-one percent of millennial respondents feel it’s not a “big deal” if they carry a balance on their credit cards. Geez. Stop paying the credit card companies 19.99% in interest. Instead, put your savings on hold and attack your debt first.
Have an emergency fund
After paying off your debt, start an emergency fund. Unexpected events happen in life all the time. The general rule of thumb is to hold anywhere between 3-6 months’ worth of expenses. Of course, it is not easy to have cash reserves for 3-6 months’ worth of expenses but you can get creative. For instance, you can put your tax refund money into your emergency fund. Or you can set up an automatic transfer to your high-interest savings account and always pay into your fund whenever your pay cheque is deposited.
Create multiple income streams
With a decline in full-time earnings for the typical 25-34 year olds, you should start thinking about how to create multiple income streams. Are you a creative writer? Maybe you can do freelance writing part-time. Working on the weekends once every month can make a huge difference to your financial health long term. Plus, you can start to hustle on Kijiji. Kijiji is a huge market. Look around at your house and you will be amazed how many items you can sell online.
Get insurance
Insurance is something a lot of young Canadians ignore, but you don’t want to make that mistake. Yes, insurance requires regular upfront payments to protect your belongings, but small payments can prevent massive damage to your bank account if disaster strikes.
What’s more is that insurance isn’t typically expensive. You can compare auto insurance quotes, or home insurance quotes so you know you’re paying as little as possible for coverage that could really keep you out of a bind.