How Millennials Should Prepare for their Financial Future

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The Everchanging Generation

Millennials, also known as generation Y seem to be existing in a time when the world around us is changing quickly and at times, it can be hard to keep up. With society evolving rapidly from the influence of technology, millennials find themselves pressured to adopt all the expected life accomplishments which are proving to be not so easy nowadays.

The Expectations of the New-Age Generation

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Get an education, buy a house, raise a family, and if you can, why not travel the world or start a business venture. Unfortunately, what was once the expected societal stages of life has now become extremely challenging due to many flaws in the economy.

With longer life expectancy and little knowledge of how to prepare financially for the future, it seems the current generation may be on a downwards spiral towards not having anything to fall back on. It is important that they are educated on these vital lessons for fiscal survival.

There are currently 2-billion people under 30 globally and as house prices increase and student debts rise there needs to be measures taken to make sure the millennials are planning accordingly. Unfortunately, this young generation has a distrust towards financial markets and institutions after growing up in a time of economic crashes and instability.

How do we Solve This?

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So, what can this generation do to prepare themselves for any economic hardships they may face in the future? Paying into a pension pot is a major priority for millennials as final salary pensions are diminishing if not in some cases already eliminated and state pensions do not offer enough to live on.

As well as paying into your pension pot it is also recommended to build your own personal savings. Personal savings are important for those looking to buy a house or start a family but is also vital for any young person. Personal savings give you a sense of security and act as a safety net during any unexpected financial crises such as illness or redundancy.

Another imperative aspect for protecting your future is investing in life insurance. It gives people lifelong assurance knowing that at the time of their death they will be covered financially for funeral expenses, any outstanding debts and will ensure their family receive a payout.

You might be thinking, if I’m young, why do I need life insurance? The truth is, buying life insurance while you are young and healthy is the best time – You may have no health complaints or illnesses so you will be easily accepted and premiums will be very affordable. Shopping around for the right life insurance is simple as there are many broker services like hello.ie that provide quotes and offer the best-value coverage.

The lesson to be learned here is that even though the future may seem far away it is never too early to prepare financially. As the economy continues to be unreliable and unstable we must ensure our personal finances remains strong.

 

 

 

 

 

 

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