Whatever your financial goals, small money leaks will stand in your way.
Maybe you are living paycheck to paycheck, or you just got slammed with an emergency car repair you had trouble paying for. Here’s how to get a grip on your finances and still live your best life.
Shane Mason, a CPA and certified financial planner, says most of the money his clients in their 20s and 30s are laying out is going to student loans.
Those monthly payments make it even more crucial for millennials to learn to handle finances in the best possible way.
The word “budget” is a buzzkill for millennial clients, said Matt Price, a CFP and senior vice president of advisory firm The Price Group.
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While it’s harder for them to grasp the concept of deferred gratification, they still need to learn something about balancing present needs with future goals. “Instead, we talk about cash flow management,” Price said.
Price works with his father, Randy Price, also a CFP and the advisory’s executive managing director. Together, they offer the perspective of different demographics.
Both Prices said that paying down any debt, whether from credit cards or student loans, should be a top priority. “Most people don’t realize that anything outside a mortgage should be attacked with a vengeance,” said Randy Price.
Whatever you call them, budgets are personal. One person’s luxury may be another person’s pointless waste of money. Mason helps his clients set specific savings rates. “They can spend the rest,” he said. “We don’t care what they spend the money on as long as they’re saving the correct amount.”