Debt is one of the key causes of stress for UK adults. Almost one in four people (22 percent) admit that within the last year they have felt stress due to being in debt.
The two websites show in more information about debt stress
(https://www.mentalhealth.org.uk/statistics/mental-health-statistics-stress), while research has also found that for Millennials, worries about money are the key reason for feeling stressed (https://www.independent.co.uk/news/health/stress-causes-uk-money-worries-skin-health-a8372676.html).
It is very easy to slip into a debt, and it can be even easier to remain in debt once you’ve started sliding down that murky financial path, but there are steps that can be taken to reduce stress, and to make financial difficulties a thing of the past.
So, with that in mind, what should all Millennials be doing to enhance their financial situation?
1. Cut out the unnecessary spend
A shocking 62 percent of Millennials say that they are not able to save money, and that they are living ‘paycheck to paycheck’ (https://www.cnbc.com/2019/05/10/62-percent-of-millennials-say-they-are-living-paycheck-to-paycheck.html). However, a different piece of research has discovered that a Millennial’s food spend tends to be far higher than other generations’ because they have more takeaways than average (https://metro.co.uk/2015/10/06/millennials-are-spending-a-silly-amount-on-takeaways-and-coffee-5422668/), which highlights that these monetary issues might be due to poor decision-making. By making simple changes – reducing takeaway purchases, for example – and then putting that money into a savings or investment account instead, it will be very easy to set aside money for a rainy day.
2. Make use of apps
There are any number of financial apps that can help Millennials to make smarter financial decisions. Moneybox, for example, invests loose change without you having to do anything, which can make a huge difference in a relatively short period. Banking apps are also very worth having as they can tell you the state of your finances at a glance, allowing you to make decisions easily based on whether you can actually afford to buy something.
3. Know your worth at work
If you are struggling financially then maybe the key problem isn’t your spending habits; perhaps you just aren’t being paid enough. If you can justify it, ask for a raise; if you aren’t going to get a raise, maybe it’s time to look for another job. You have to make decisions that are best for you and your circumstances, and sometimes that means making tough calls.
4. Consolidate your debts
Debt consolidation loans can massively help people pay off debts, especially if the deadlines for making various payments occur at different times of the month. By amalgamating your debts you can have a far better understanding of what you need to pay, when payments are due, and how much you left in total.