{"id":1994,"date":"2022-09-19T06:00:00","date_gmt":"2022-09-19T13:00:00","guid":{"rendered":"https:\/\/humanitywealth.com\/?p=1994"},"modified":"2022-09-18T21:13:53","modified_gmt":"2022-09-19T04:13:53","slug":"8-golden-financial-planning-rules-for-millennials","status":"publish","type":"post","link":"https:\/\/humanitywealth.com\/financial-planning\/8-golden-financial-planning-rules-for-millennials\/","title":{"rendered":"8 Golden Financial Planning Rules for Millennials"},"content":{"rendered":"

Sadly, some people have to learn about managing their finances the hard way. Many millennials learn about using credit cards after they are thousands of dollars deep into debt. <\/span>We don\u2019t want that to be you!<\/b> <\/span><\/p>\n

If it is, and you want to get your finances under control, here are eight rules for millennials to apply starting today. <\/span><\/p>\n

Use this guide from a financial advisor in San Ramon to help you navigate Financial Planning for Millennials<\/i><\/a>.<\/strong><\/h3>\n

Rule #1: Create a spending plan and budget<\/b><\/h2>\n

Creating a spending plan is the first step to setting some healthy financial boundaries. The importance of creating a budget cannot be overstated. The only way to ensure you\u2019re on track financially is by monitoring your spending, sticking to your budget, and maintaining an eye on your net worth. <\/span><\/p>\n

Tracking your spending means keeping tabs on it all\u2014to stay aware. Once you figure out your \u201c<\/span>monthly burn rate<\/a><\/strong>,\u201d <\/strong>make sure that number does not exceed a certain percentage, such as 50% or 25%. If it exceeds that threshold, look at where you could cut back. <\/span><\/p>\n

Perhaps some things can be eliminated altogether, or some services can be switched from monthly subscriptions to annual payments. As an affordable financial advisor in the Bay Area, Humanity Wealth Advisors provides <\/span>subscription-based financial planning to all ages<\/a><\/strong>, not just millennials! For $50 a month, this could be the best investment of the year.<\/span><\/p>\n

Budgeting also includes tracking net worth (and income), so they match at any given time. This is important because it allows <\/span>millennials that prefer immediate gratification with results to understand that efforts are paying off<\/a><\/strong>.<\/span><\/p>\n

Rule #2: Set goals now<\/b><\/h2>\n

\"womanSet goals right now, not when you have money. Many wait until their financial situation is \u201cbetter\u201d to set goals. They say they\u2019ll start saving or planning for retirement after getting a raise, after the holidays, or after their car is paid off, but there\u2019s no reason to wait!<\/span><\/p>\n

You can set milestones for yourself<\/a><\/strong> (like \u201cI want to save $1,000 by the end of this month\u201d) and build up from there. Even if you never reach those milestones, at least you will be getting into the habit of setting short-term and long-term goals.<\/span><\/p>\n

Rule #3: Pay off your student loans<\/b><\/h2>\n

Student loans can be one of the most expensive debt burdens you’ll ever have, but many people don’t know exactly how much they owe until after graduation. Some may only be able to pay off their student loans in small amounts over time, which means that it can take years or even decades to get rid of them.<\/span><\/p>\n

It’s important to understand that paying off student loans is not just about saving money\u2014it’s also about building debt-free habits from the beginning and developing good credit scores so you can buy a house and start a family someday. The sooner you pay off your student loans; the less interest will accrue over time. This can give you an advantage over others who continue paying high rates on their education debts well into middle age or beyond.<\/span><\/p>\n

Rule #4: Pay down credit card debt<\/b><\/h2>\n

The fourth golden rule of finance is to pay off your credit card debt and try not to accumulate more.<\/span><\/p>\n

While it’s true that having a revolving line of credit can be helpful in an emergency, the sad reality is that most people use their credit cards to spend money they don’t have. This strategy is bad for multiple reasons:<\/span><\/p>\n