5 Ways To Be Smart About Money When You’re Young and Single

A commonly misunderstood millennial stereotype is the age group’s spending habits¹ – eating out regularly, spending money on travel and not thinking about saving for long-term goals. However, studies show that millennials are focused on saving, investing and paying down their debt.²

Home ownership seems to be the carrot on the stick that keeps getting further away. About a quarter of millennials currently own the house they live in and only 43% of them are looking to buy in the next five years.³

Saving money when you’re young and single is smart; having a financial plan may help you achieve your financial goals sooner.

If you’re a millennial that’s stressed about your finances, here are some steps that may help you achieve your financial goals.

Create a Budget

If your short-term goals are saving for things like traveling or concerts, budgeting can help you achieve your goals. Start by totalling all the money you bring in every month and then compare that with your expenses. Make note of both fixed expenses (car payment, student loan re-payment, etc.) and general expenses (going out to restaurants, movies, etc.). You’ll want to make sure you’re earning more than you’re spending so you’ll have money left over for either saving or investing. It’s never too late to start saving. As a millennial, you have one useful advantage over those who have been investing for years – time.

Set Financial Goals

Identifying what you’re working towards is a first step toward financial success, and it helps make future planning decisions easier. You’re more likely to achieve your goals with proper planning. There are also advantages to opening an RRSP or TFSA that may help you reach those goals. Ask me about them today.

Prepare for the Unexpected

It’s important to protect your money in case unexpected events occur. Individual disability and critical illness insurance can help supplement your income in case you get injured or sick and can’t keep working. You might also want to start an emergency fund you can access in case you need money quickly. Ask me about these today.

Connect with an Advisor

I can help give you added insight and expertise on how to tailor a plan that fits your needs now and in the long term.

Review your Plan

We can regularly check your plan to make sure it still meets your needs as your financial situation continues to evolve. Your goals will likely change over time and you may want to allocate your money differently or increase your investments. I can help you navigate any changes to your finances to ensure your plan is sturdy and your goals are still attainable.