5 financial mistakes millennium make

5 financial mistakes millennium make -
Although the US economy as a whole has the Great Recession, Millennials (those born from the early 1980s until early 00s) are still struggling with student debt and slow growth of employment. The sluggish economy and student debt are not the only things that keep Millennials to achieve financial independence and success.
Let's take a look at five millennium money mistakes tend to do and how we can fix them.
1. Avoid a budget.
One of the most basic mistakes, not from the budget may lead to live beyond your means. This puts pressure on your plans and future financial goals, even if you have a good eye for things like groceries or car insurance typically cost. Do the math and find out if you break even or be able to save more each month is crucial to building a buffer against the debt. It can be as easy as starting to use a new budgeting tool online or mobile. You do not even need to leave your desk.
2. Abusing credit cards.
According to a study by the credit reporting agency Experian, Millennials have a hard time paying credit card bills, while having one of the highest rates of the four listed credit utilization generations. The use of credit, also known as the debt-to-credit ratio is the ratio or rate of your balance (what you owe) from your overall credit limit.
From the study, the Millennium average rate is 37%, which is above 35% or less that creditors prefer. Following these payments two late-factors and high-use credit Millennials have the lowest credit scores in four generations. Consider a credit score as a financial report card, which means you have to turn all the time and pay the balance in full each month.
3. Location forever.
There is no secret that Millennials are not active buyers. Homeownership is important to consider because ultimately it costs more to rent a home than to buy one in many areas. Moreover, Millennials do not build equity while renting indefinitely. Of course, many Millennials are still traveling and exploring no plans to settle down yet, but if a reasonable agreement on the property back on the road, it would be wise to consider buying.
4. Registration little to nothing for retirement.
Surprisingly, two out of three Millennium intends to retire at 65, but about 70% have not started saving for retirement, according to a 2013 survey by MainStreet.com and GfK Roper public Affairs & Corporate Communications. Even more worrying is that half of all Millennials expect to make money from social security, even if full payment reserves are to cease in 2033.
The journey to retirement starts with a payment unique, then another. If you are lucky to have 401 (k) plan corresponding to the employer, to take full advantage of it and make above average contributions. Alternatively, build your own IRA, choosing a Roth IRA or traditional, and set aside a percentage of your monthly income towards it.
5. Life insurance jump.
Get insurance in general can seem daunting, but it is good to examine the different types, even those you do not think you need to first . Life insurance is one that may not have yet found, but there are reasons to consider it.
One of the advantages of getting a life insurance policy early is that it will probably cost you less now than later-life insurance is highest younger and healthier that you are. In addition, you do not know if your health could change, which could make the cover to get much more expensive, if not impossible, later. And remember that the co-signatories on the financial accounts you may have responsible for your debts should you get nothing.
From the basic act of budgeting to consider life insurance, these actions can help ground your financial future. Registration for later in life is the foundation to have a life without debt and securing pension plans. In Millennial you can always find your way in this economy, but you can help prevent one of these five financial mistakes to add to your burdens.