By Victor Ochieng
According to a recent survey conducted by TIAA, many people are having financial troubles. For example, only a few people have short or long term financial plans to help them better their current financial statuses. At the same time, only a few have savings that can help them when faced with emergencies.
Amy Podzius, the TIAA’s director of field consulting group, shared a list of some of the most dreadful money issues millennials are facing. She underlines that “While the chilling thrill of Halloween will soon come and go, money mistakes can cause a year-long scare (or more), if one isn’t careful.”
Below are five of these scariest realities:
Accumulation of high credit card debt
When young people are faced with the reality of having to take care of housing and other living costs, they realize it’s no mean feat. This drives many of them to turn to their credit cards to sort out things that appear to be out of their reach. In her advice, Podzius says, “Exercise discipline with credit cards and keep balances to a minimum. Also, track monthly expenditures to avoid overspending, and use that process as a guide to create and commit to a strategic budget plan.”
Skyrocket educational cost
Education is key to a better future. Unfortunately, this key has become so expensive that many young people are forced to rely on loans to get it. While some don’t give much thought on how much they accumulate on student debt, Podzius advices that people should only borrow judiciously for their undergraduate level education. Podzius points out that millennials should look into job placement rates against the amounts they need for their studies. As for graduate level, students should consider taking part-time classes and jobs as a way to cut on the need for student loans.
Failing to buy health insurance
Even if you’re in good health, and even if you’ve been so for years, it’s important to have an insurance cover. This, she says, will shield your pockets whenever the need for medical attention arises. Even if you just have a low premium high-deductible insurance coverage, just know it’s way better than none at all.
Failure to plan for nail-biting expenses
Many aspire to have beautiful weddings, honeymoons and homes. However, not many of them make plans and save for such expenses. This forces them to make rash financial decisions that only work to haunt them thereafter. Don’t be so worried about the future, plan and save well, you won’t regret it.
Not being ready for life’s serious nightmares
Many millennials who are in a comfortable financial state think that things will remain that way forever. However, that’s not what life is about. As such, you must be prepared for such things as car breakdown, health troubles, and job loss among others. Podzius says, “Protect yourself by building up a solid emergency fund that covers three to six months of your living expenses.”
Don’t overlook the above tips; follow them for a solid financial future.