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Millennials Investing - Complete Controller

There has been some debate that Millennials are the best generation at making investments. According to the leading names from the financial industry, Millennials are best known for having student loan debt, but they could be the smartest investing class. This means that their generation is making the best use of their finances by using their money more intelligently than other generations.  Check out America's Best Bookkeepers

In terms of personal attributes, Millennials are known for possessing promising qualities to become intelligent and successful investors. Though most Millennials are deep in educational loans, they have certain traits and skills, which makes them great candidates for placing their finances in some of the best possible investment options. Though recent times have been bad for investment purposes because of the recession-era economy, Millennials have been able to navigate their way through and find successful investment opportunities through extensive research, which allowed them to make smarter choices.

 

Here are a couple of reasons due to which Millennials have become the best investors of their time:  

Making Financial Plans

One step towards successfully investing your money is to make financial plans. You would know where your money is being spent and how much return you are going to generate. According to research conducted by the Koski Research in June 2017, about 74% of Millennials were found to have made a financial plan. Of those, 34% had put that plan in writing. In comparison to other generations, only 18% of baby boomers and 21% of Generation Xers had written financial plans.  Check out America's Best Bookkeepers

Hustling While You Can

While Millennials might not be the best at making much money from their primary job, however, a more significant percentage of them have their side hustles going on. This means that they are involved in more activities on the side besides their primary job and are earning extra income for themselves. A report by CareerBuilder showed a decline in the number of people hustling on the side who are 35 and above.

Choosing Wise Health Insurance

While Baby Boomers or Generation Xers have difficulty selecting the right health insurance for themselves, Millennials actively choose better health insurance options, according to the Employee Benefits Research Institute. They do thorough research since they have access to unlimited information and are at the advantage of selecting the right plan for themselves, their coworkers, or their family members. This allows them to save hundreds of dollars over the years, which otherwise can be used for smart investment options. 

Millennials Save Better than Boomers and Gen Xers

According to Schwab’s study, there are 31% of boomers and Gen Xers who have their monthly savings goals intact compared to 28% of Millennials. This is a very close difference between the generations, signifying that Millennials realize the importance of savings, one that would last them a couple of months or one that can be used for investment purposes.  Check out America's Best Bookkeepers

Millennials Practice their Plans – They Don’t Forget

More often than not, there will be a moment where your investment may underperform, contradicting with your hopes and investment plans. However, in such scenarios, when Millennials are compared with Gen Xers and Boomers, a study found that Millennials were able to adjust their investment portfolios better than their counterparts. This signifies that they keep some room for a rainy day, which might hurt their finances and investments.

Bottom Line

With the world of information at their disposal, it is only right that Millennials are rising ahead of Boomers and Gen Xers compared to their investments, finances, and stock portfolios. They are naturally savvy to the events taking place around them, which allows them to make much more informed and better decisions logically. Hence, if you are reading this and are a Millennial, you might have the right background and skills to become an all-star investor.

 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Who are Millennials?

Millennials are the people that were born between 1980 and 2000. The millennials are the people who developed their working ethics and traits from caring parents, disciplined lives and relations with multiple people.

What is important to millennials?

Millennials are people who love the idea of working with teams and are better at making friends with colleagues. Millennials are better performers when it comes to working with various coworkers. The reason behind such personality traits is present in their growth period because at that time growing up with different children was the trend.

People of 1980s to 2000 generation carry a “can do” behavior towards assigned tasks and are eager to get comments about their performance either on a weekly or monthly basis. Millennials are always at an urge to be assigned different tasks and assume that they will be able to complete every single one. Positive and optimistic about their goals, millennials have the aptitude to accomplish everything.

Common traits of millennials

Millennials have the drive to become leaders and get educated about different aspects from their experienced and executive colleagues, but all of this is possible when their ideas and plans are being encouraged. Millennials fall in love with difficulty and hate the idea of getting bored. Having experience in maintaining different activities like friends, teams, and humanitarian jobs, millennials are always working to adjust with busy schedules with a touch of enjoying life outside of work.

Millennials are people who want to know where their career is leading them and want to be aware of how they can get there. These people are always up for a challenge and want a challenge for real in order to stay motivated.

What makes millennials weak?

As computer experts, millennials are interlinked across the globe through instant messages, email, text messages or either through the internet. Talking about getting a new job, millennials have business contacts and friends to help them out with a single tap. Knowing all of this before managing millennials is an important job.

 

Tips for management of millennials

Give structured and clear reports having due dates according to their months. Provide jobs that have fairly steady working hours. Schedule meetings associated with various activities. Conduct meetings covering all the essentials and minor details. While managing, state all the objectives clearly and make sure that a daily progress status is intact. Millennials don’t like the idea of working in a confined environment instead they want a high paced motivating environment.

Provide a direction with a guided working procedure to millennials as they tend to look up for a leader to follow accordingly and get daily comments on their progress. Every person of this age group wants a clear entrance to the game and wants to stay updated about what is actually happening. Design the work environment in such a way that it offers a lot of time towards coaching and teaching and stay alert on this issue on hiring millennials. Every millennial deserves and wants to be utilizing their time at their best.

Millennial employees are great when it comes to multitasking they can even go to the peak of never seen before multi-tasking. Talking on the phone while handling emails along with responding to numerous messages is all in a days work in the life of a millennial. In fact without many challenges and various tasks, in a week a millennial might get bored.

Like always, when a specific group of people is characterized on the basis of their age then some employees will fit these traits completely, while there would be ones who might fit only half of the characteristics, on the other hand, there will also be those who wouldn’t fit a single attribute of these personality traits.

A firm keeping all these traits in mind about managing millennials will be able to push their industry further beyond towards success.

 

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Group of young business people have meeting in office. New plan discussing. Four persons. Intentional lens flares
Setting budgets, saving money, and regularly contributing a tiny portion of income to your retirement account can not just help you meet your financial emergencies but also allows you to secure a safe and healthy post-retirement life. It is true that saving money on a regular-basis is a tough job for most millennials as they lack money-management and budgeting awareness. Creating an ideal budget for the month is not an alien job, all that you need to do is to stick to the devised budget the way you have planned or intended it to be.

Money-related issues can cause you a great deal of stress, especially when you have to support your entire family with many mouths to feed. To stay on top of your budget, you first need to have a well thought out brainstorming session for sorting things out like your monthly income, monthly expenses, anticipated saving benchmark and other similar things. Budgeting doesn’t have to be that hard. It all depends on the motivation level of a person; whether or not they truly want to save money for hard times. Setting your monthly saving targets can help you save a significant portion of your money which could further be invested somewhere useful or help in financial emergencies and difficulties.

Look At the Bigger Picture

For ideal budgeting, you need to learn the art of the game first for staying on top of your cash flow. Millennials who are already exposed to various ways of spending money now need to plan sensibly and make a budget wisely or else, they will never be able to save money at all. It doesn’t matter what tool or technique you consider to use for ideal budgeting, as long as you know the significance of making a budget—you are never in the ruins.

Let’s suppose you are using a budget spreadsheet. You will have a better understanding of your finances and where your money is going each month. Also, you will feel more in control of your finances which will ultimately get you one step closer to meeting your financial goals. According to studies, most millennials face financial traumas early in their professional careers because they fail to manage their finances properly. A lack of money-management skills begins with lack of planning and motivation to save money for meeting financial problems. Those who regularly contribute to their retirement, 401k, or IRA account can enjoy their post-working life more than anyone else because they will have the financial security and safety to make the most out of it.

Create a Budget

Creating a budget plan for the month allows you to live comfortably within your means. You need to precisely know your current financial status and how much you can afford to spend in a month. For that, you need to set both short and long-term goals for creating the right plan for ideal saving and budgeting. This indicates that planning and budget forecasting is critically important for creating a successful budgeting plan. According to research, those who have the habit of saving can have a healthy, more stable, and secure future.

Stick With Your Budget Strategy

Once you have a clear picture of the ins and outs of your cash flow, you need to refine your budget strategy. Tightening and cutting your extra expenses will help you save more which means that sticking with your budgeting strategy and plan is ideal in every sense. First things first, always pay your debt. After that, you need to set your priorities. There are certain unavoidable expenses like utility and household bills which cannot be avoided and that cannot be controlled. However, you can cut back on grocery and shopping bills by limiting your spending habits.

Get Help from a Budgeting Expert

If you are not good at numbers or setting up a proper budget, you can hire the professional services of budgeting experts or planners. From bookkeeping and inspection to planning, they will have the creative vision to provide you a workable monthly budgeting plan.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Successful businessman in suit standing in office with hands crossed on chest, looking through window at big city buildings, planning new projects, waiting for meeting to start. Copy space for text
Millennial entrepreneurs are sinking into student loan debt with soaring college tuition. It’s exceptionally challenging, time-consuming, and costly to start a new company, especially for recent college graduates. The Federal Reserve estimates that Americans owe approximately $1.3 trillion in student loans. The millennial generation signifies a sizable share of the nation’s 43 million student loan borrowers and their debt load upsurges every year. Beyond principal balances, the impact of student loan debt is felt in monthly expenditures. Ambitious entrepreneurs who finished post-graduate work can face an even higher average monthly payment amount. But, the truth is, most start-up businesses fail and the hype and mainstream appeal of entrepreneurship does not reflect the reality of the millennial employment marketplace.

Student loan debt proves problematic for young entrepreneurs trying to save for a startup or small business attainment and also produces cash flow burdens once the business is up and running. Too often, large student loans dishearten talented millennials from chasing their entrepreneurial dreams completely. It doesn’t have to be that way. By learning to manage their student loan responsibilities, millennial entrepreneurs can overcome these hindrances and make their proprietorship dreams a reality.

Handling Student Loan Debt When Opening or Buying a Small Business

Launching or purchasing a business isn’t for the faint of heart. It involves personal sacrifice and the aptitude to make hard decisions in both your business and personal lives. If you’re a millennial entrepreneur, here’s the bad news: Your student loans aren’t going away. But the good news is that you can organize repayment with good bookkeeping to minimize the impact that your student loan debt has on your business proprietorship plans.

Loan Consolidation

Student loans can be either federal or private, although the choices are more restricted for private loans. Federal loans can be easily amalgamated to simplify repayment and lower monthly payment amounts. Under some circumstances, federal loan consolidations can be restructured into a graduated payment plan. Instead of uniform monthly payments over the life of the loan, payments are lower during the early years when you are just starting out as a business proprietor and cash flow is tight. Payments increase after two or four years, but graduated repayment plans provide the breathing room you need to get your corporation off the ground.

Private loans can also be combined, especially if you have a good credit rating. Talk to your moneylender to determine whether you qualify for consolidation and, if so, which plan is most helpful in aiding you to achieve your own objectives.

IBR and PAYE Programs

During the initial period of business proprietorship, most entrepreneurs have limited personal revenue. Instead of paying themselves, proprietors usually pour money back into their businesses. It’s a smart business stratagem but it makes it even more difficult for entrepreneurs to keep up with student loan payments. Federal student loan defaulters with little or no income can apply to participate in Income-Based Repayment (IBR) and Pay as You Earn (PAYE) programs. These government-sponsored programs can be a Godsend to cash-strapped entrepreneurs because they catalog monthly payments to personal income. Monthly payments are capped at either 15 percent (IBR) or 10 percent (PAYE) of the borrower’s personal, unrestricted income.

Bootstrapping

Bootstrapping is a tried and true strategy for entrepreneurs and business owners in the early stages of their professions. To advance the odds of business success, new proprietors often live thriftily, even if it means radically altering their personal lifestyles for a period of time. A bootstrap mentality can also be useful for handling student loan debt. By leaving yourself with a prudent lifestyle for a few years, you can pay down your student loans without seriously impacting your business plans. The most important thing to keep in mind is that your student loan debt won’t last forever. Once you’re able to repay your loans, you’ll have more money to invest in your company.

Conclusion

While millennials show both enthusiasm and assurance for starting a company, they are combating unemployment, underemployment, and the interminable student loan crisis. While we believe that entrepreneurs are critical for a healthy economy, most of us will have to be patient if we want to become successful business owners.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

Budgeting for Millennials - Complete Controller

Just like all other generations, millennials have to face a unique set of challenges in their transitional journey into adulthood. Entering into “the real world” has been challenging for the current young generation because of uncertain economic times and the burden of student loans. Money management has to be a top priority if they want to succeed through these tricky times.

Budgeting is vital for everyone. However, it is crucial for individuals in their 20’s and 30’s because it will eventually decide the quality of life later on. Keeping track of your financials ensures that you do not make imprudent money decisions and practice healthy spending habits at an early age.

Budgeting Tips for Millennials Check out America's Best Bookkeepers

Look at the Bigger Picture

Before you get into any budgeting details, you must draw a complete overview of all of your income streams and how you are currently managing them. If you believe that you are not earning enough money to make ends meet, it’s probably time to either look for another job or cut your expenses. One way to move up in your current job is by giving 100% to even the most insignificant tasks. This might incline your boss to notice your sense of responsibility, which could lead to a raise or promotion.

Having a clear picture of your savings and investment options is also a part of budgeting. Millennials have to be ready for times that are coming up ahead. Invest in a retirement account as soon as possible because this will allow you to start contributing to it from the very beginning. There should also be some emergency funds, which can be used in case of unforeseen circumstances. It would help if you looked at the bigger picture when making your budget rather than focusing on short-term goals. Check out America's Best Bookkeepers

Form a Budget

The ultimate purpose of a budget is to allow you to live comfortably within your means and save enough money for your future. The essential ingredient of a budget is data. All of your income, expenses, debts, and other financial affiliations will be presented in the form of numbers or data. Add up all income from whatever sources there are to begin your budget.

Once you have accounted for income, try detailing your expenses along with the category they belong to, such as living expenses, bills, loan payments, rent, and others. Millennials often tend to let go of small costs that they consider to be unimportant. However, these small amounts tend to grow significantly with time. Therefore, they must be catered to from the start.

Subtract the income from expenses to have a clear overview of what you have to work with each month. The next plan of action can then be decided based on the data in front of you. It all depends on what you are planning to spend and then saving the remaining balance, which will make all the difference in the end.

Refine the Budgeting Strategy

Millennials quite often have to deal with unforeseeable situations because of the fast-paced world in which we live. They come across various instances that may require you to spend outside of your budget. It is recommended that you should keep enough space in your allocated budget. Allocate some amount to expenses that may occur without any prior warning. Check out America's Best Bookkeepers

This is also the time to refine your budgeting strategy as most of the essential elements are now. As portrayed in the above scenario, everything might not turn out to be how we planned. Therefore, a refined strategy caters to all anomalies that can affect your budget.

Seek Help from Technology

As we see, the advanced solution to almost every problem is technology. Millennials can similarly seek technological solutions for their budgeting needs. Some apps can help you:

  • Track cash flows
  • Optimize investments
  • Set up a detailed budget
  • Receive alerts
  • Provide updated balance details

Keeping track of all these activities in one place is an advantageous way to manage your budgeting needs. They must be implemented by every millennial to stay afloat in today’s society.

 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers