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How can millennials improve their financial situation?

About 65{1973852c3d03fa9c7b89cf4e32c90950349d2a7529a1646edaa4b9e79bec0c07} of millennials worry about their financial situation, and since the recession, they are understandably nervous of the financial services industry. Many now rely on the Internet and their own research, rather than the advice of a financial adviser. However, by doing this, they are not necessarily accessing the best or most reliable information.

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What can millennials do to ensure they are in the strongest possible financial position?

Find a certified financial advisor

Only 40{1973852c3d03fa9c7b89cf4e32c90950349d2a7529a1646edaa4b9e79bec0c07} of young people surveyed cited financial experts as their top source of information. It seems millennials are not convinced that paying for advice will be worth it. However, the sooner they are able to access reliable, prudent advice, the sooner they can gain control over their financial literacy.

Financial advisers have access to a whole range of different tools to help them, such as back office systems for financial advisers, from https://www.intelliflo.com/.

Put together a financial plan

Although it can be difficult to make a plan which will not see immediate benefit, millennials need to trust that in the long term, they will see financial gain. For example, having made the decision to save £50 each week for four years, an individual might find it hard to envisage how this will translate to the long term ‘tomorrow’ perspective. In fact, at the end of the four years they will have saved £15,000.

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Automate cash flows by setting up individual accounts, specific to each goal, such as travel fund, house fund, savings etc. Automated transfers to each one on a monthly basis will remove the temptation to spend the money on something else or eliminate the chance of forgetting to put the money aside manually. Sometimes, it can feel incredibly overwhelming to look in detail at your finances and spending habits. However, it is an important step to take.

Insurance

Even the very young and healthy can be faced with unforeseen events. It is important that individuals take out an insurance policy against risks such as illness or death. This will ensure they or their family will not have to incur large and unexpected costs should they be unlucky enough to suffer an accident or unexpected illness.

As an additional back-up plan, they should also set aside a ‘rainy day fund’ which can be drawn upon should an emergency happen.