Many millennials find themselves financially struggling, unable to stop the snowballing of their debts until they plummet into bankruptcy.
In fact, millennials are filing for bankruptcy at a faster rate than any other generation.
Are you at risk?
- Do you have student debt running into the tens of thousands?
- Does it feel impossible to repay your school debt without financial help from your parents or taking on loans?
- Do you rely on credit cards to cover your daily living expenses?
- Do you turn to payday loans to get by month to month?
- Do you find yourself spending money on costly gym memberships and expensive cell phone plans?
- Do you save little to no money on a monthly basis?
- Are your savings for retirement or life’s unforeseen emergencies at zero?
If so, you are not alone. Many millennials are in the same exact situation. But it’s your next steps that will determine where you’re headed financially.
If you’re feeling stressed about your debt, you need to know there is something you can do. Debt freedom can be accomplished.
Here are 5 tips to help you start saving money and stop the trajectory toward bankruptcy.
Tip #1. Skip the designer coffee.
The amount of money that can be charged for a coffee these days is unbelievable. Do some research and invest in a machine so you can brew your own at home. Make designer coffee runs a once-in-a-while luxury as opposed to a daily habit.
Tip #2. Don’t go for those expensive gym memberships.
While a healthy lifestyle is important and has far-reaching mental and physical health benefits, you don’t need to belong to a gym that you can’t yet afford. There are free, full-length YouTube videos out there that give you cardio routines and weight training sessions. Buy a set of inexpensive weights for at-home use until you can actually afford the gym.
Tip #3. Ease off the IG-worthy foodie experiences – and takeout.
Fancy is a pretty good word to describe the restaurant tastes of most millennials. Everyone these days is taking Instagram shots depicting the luxurious high-end dining experiences that even many professionals can’t afford or simply don’t want to spend on. Even just eating out can burn a hole in our wallet. Why not start cooking at home? You can save money by preparing meals in advance and batch cooking. Freeze any uneaten portions for a night when you’d normally take out. This will not only leave you with a healthier bank account – you’ll probably come away with a healthier waistline too!
Tip #4. Take a pass on the most expensive, latest model smartphone.
Do you typically gravitate toward the most expensive and latest model phone available? It’s probably because yours is really the first generation to grow up with these gadgets. The devices themselves are costly, and the long-term expenses to upkeep them are exorbitant as well. Cell phone plans are far from cheap. So try to stick to the most economical option that gives you the access you need – albeit without all the bells and whistles – until you can afford the latest and greatest.
Tip #5. Contact a Licensed Insolvency Trustee.
It may be that the solution to your financial issues is as simple as tracking your spending and tweaking your budget – or even just creating a budget in the first place! Or it may be that a loan consolidation is the right step, to help you focus on one monthly payment instead of several.
If you are worried about the debt that you’re accumulating, the single best thing you can do today is to contact a Licensed Insolvency Trustee (LIT).
These federally licensed and regulated financial professionals are able to assist you with the full range of debt relief options – from budgeting to bankruptcy. They have the education and credentials to properly advise you, and they are also bound by strict ethical rules, so you know you’re getting financial advice that’s in your best interest.
Your first consultation is free. At this consultation, your Licensed Insolvency Trustee will review your financial circumstances and advise you on the debt relief options you have available to you, their pros and cons, and the LIT’s seasoned opinion on which would be best for you.
It doesn’t cost anything to get set on the path to a brighter financial future – one where you are ahead of the game-saving, as opposed to behind the ball struggling.
And remember, the sooner you get assistance, the more options you may have available to you to resolve your debt. Bankruptcy may not be inevitable. And you can achieve freedom from your debt.
So what should you do with the money you’ve saved using the above tips?
This is something that you can discuss with your LIT as well. Money management and financial counselling is important to securing your future, and LITs are widely considered the best financial advisors in the nation.
You can and should pay down your debt. Once you’ve done that, you can start saving for an emergency fund and for retirement.
With respect to an emergency fund, many millennials are unable to pay for unforeseen expenses, like car repairs. You need to prepare for life’s twists and turns to avoid having to take out payday loans or other high-interest loans to get past them.
As for retirement, it does seem like retirement is a long way away, right? But going into retirement without enough savings or – worse yet – saddled with debt, is a dangerous place to be. It could lead you to bankruptcy in older age.
It all starts with what you do next.
Contact a Licensed Insolvency Trustee Today
It is our mission to help you find relief from your overwhelming and burdensome debt. As a seasoned LIT with decades of experience, I am proud to have helped thousands of Canadians achieve debt relief. Don’t let your student loans and credit card debt weigh you down or stop you from achieving your dreams. Contact us today at 519.310.JOHN for your free initial consultation.