Joseph Laforte is the team leader at Par Funding company, which is a Miami based B2B capital provider. It helps business owners with some of the largest obstacles they might be facing, small and mid-sized business owners, like cash flow or short term loan in order to help them grow and expand more. Joe Laforte and his team are known for their reputation, making quick turnaround time, as well as a long record of closing loans that traditional banks and credit unions have turned down.
The overall millennial generation is known as being stylish, bold, and creative. They often have a great sense of humor, a good education, and the ability to master new technology almost instantly. This generation has a unique and different set of problems related to their finances from previous generations. However, despite the problems they are facing with finances, most millennials are committed to achieving financial independence. Unfortunately for them, they might struggle more, especially with the living expenses and student loans getting higher every day.
So what are the biggest challenges they might face:
1.Millennials are facing a dilemma – According to Joseph Laforte up to 50% are forced to turn to credit cards in order to pay their monthly bills. Once they fall into that cycle of debt, 25% often find themselves dealing with late payments, bill collectors, and other problems. Fortunately, many millennials are able to rely on their parents. Around half of them still, rely on their parents to help with their finances. Most millennials are aware of the fact that when it comes to their financial status, getting their dream job, and even their retirement funds, they are already starting out at a disadvantage.
How millennials spend?
Millennials often have the desire to be up to par with their peers, mostly because of the influence of social media. When people post their major purchases, like houses or cars across their social media accounts, it is easier for millennials to see exactly where their peers are in their lives, and they often feel the desire to keep up with them. This, of course, does not mean that millennials are not financially savvy. Many of them are still learning how to save money, especially by buying discount clothes, learning to appreciate cheaper food and drinks, and other important areas.
Many millennials find themselves to be overly optimistic, assuming that things will just work out better in the future, simply by thinking positively. They want to create a good relationship with their financial advisors and understand where their money is going. Their workplace philosophy does not only rely on the money they earn, but they want to work for a company that has standards and values they can stand behind, where their independence and opinion is supported, and where they are given freedom to shape their own lives.
How to master finances for millennials?
As stated before, millennials are learning how to spend and manage their money. And there are several keys that will ensure them to reach the next financial level and make more of their money situation. Here are some things to know in order to master your finances:
1.Set a budget – the most important thing is to know how much money you are earning and how much you are going to spend in order to gain healthy habits
2.Stop the money outflow – most millennials do not realize that a big part of their finances is escaping through unnecessary expenses. Some things they might not need is a pricey gym card, regular visits to Starbucks, and high-dollar cell phone data plans.
3.Increase your saving when you get a raise – if your income goes up, you saving should increase with it.
4.Ask for help – the millennial generation is known for their independence, but when it comes to finances, they will need some guidance.
Conclusion
The millennials are facing a set of challenges, but the good news is that millennials do have the power to reach through society’s perceived sense of entitlement and create a bright financial future for them and their families.