Money as a Responsibility: 20 Ways Millennials Can Fight Financial Fragility
By: Sheena Ricarte
Tags: Financial Security, Personal Finance, Saving Money, Finance, Money

Money as a Responsibility: 20 Ways Millennials Can Fight Financial Fragility

By Sheena Ricarte, Freelance Finance Journalist

Wednesday, March 6, 2019

The author in January 2019 (Photo Courtesy: Sheena Ricarte’s Instagram)

As millennials, we were definitely raised differently from our Baby Boomer and Generation X predecessors. We grew up in global recessions, the Dot-com era, the unbridled and vicious cycles of social and environmental degradation like climate change, unwanted pregnancies, and single parenthood.

Depression, despair, and suicide are also included as among the serious social concerns that we are faced with in today’s world.

Moreover, we live in a time of international changes like the rise of different sexual orientations as lesbian, gay, bisexual, transgender, intersex, and queer or LGBTIQ being globally accepted and the ascendancy of social media communication enabling us to express ourselves freely though not everyone would necessarily do it responsibly.

Bigotry or traditional thinking which is tantamount to narrow-mindedness has come to an end as we are now accepting of the various perspectives and lifestyles of people from massively diverse backgrounds.

Being a millennial, I have noticed that talking about money is seemingly a taboo with our Baby Boomer or Generation X parents. For my older predecessors, they view money as something to be shared to others and not to be greedy with.

I have seen people familiar to me like my relatives leading impoverished lives and having made uninformed or mistaken financial decisions. They all have their excuses, blaming other people, their environment, or the society.

When I reflect on these realities in my life, I can see that these people do not understand the importance of working hard and the value of saving money. As a whole, they barely have an idea of how money greatly shapes a person’s overall life.

I think that these outdated perspectives need to be put to an end. As we live in a money-driven world, living in financial fragility is certainly financially unintelligent.

It translates to being irresponsible in life. Financial ignorance and irresponsibility should never be an excuse as to why a person is poverty-stricken.

Since life is freedom and as Spiderman’s uncle in the film said that with great freedom comes great responsibility, I reckon that this accountability also equates to money or financial responsibility.

This obligation comprises taking the initiative of working hard to give oneself financial protection for one’s needs, family, emergency situations, leisure, and the future. In essence, personal financial protection is one’s personal duty.

As we live in an accepting society now where communication is key in order to resolve social problems which have risen due to lack of awareness and open and sensible discussions over important social issues, we should freely discuss money — its nature and how it impacts a person’s overall existence.

It is absolutely true that money — and hordes of it — cannot be taken in the afterlife. I agree in what Mexican billionaire and the once richest man on earth, Carlos Slim, wisely remarked, “At the end, we leave with nothing.”

Sheena Ricarte admires Mexican billionaire Carlos Slim’s advocacy of corporate philanthropy. She reckons that his view of wealth and what to do with it makes absolutely perfect sense.

Nevertheless, as we live in a money-driven world, I think we should give value to the legal tender and recognize the importance of saving it not only for the rainy days but, most importantly, for the future.

In addition, money should be used for the benefit of the society, not for purposes of greed or hubris. Here are 25 ways that will help millennials prevent financial fragility:

1. Save for today. Plan for tomorrow.

These two sentences obviously appear like basic personal finance wisdom. They are, indeed, commonsensically common sense. They appear to be phrased simplistically and their meanings are a no-brainer.

But they are financially empowering and financially liberating, especially when one reflects on the long-term advantages of applying them in one’s financial life.

I am actually quite a fortunate millennial and relish having Baby Boomer parents who are well-educated, financially savvy, and fiscally conservative. They have ingrained in me to be financially responsible and taught me the lifelong value and convenience of having financial protection and financial security.

Money is certainly not a dirty word. It is a very important component of human life, thus, it should be treated with utter responsibility.

2. Always keep your and your family’s financial future in mind.

Saving money for the so-called “rainy days” has been a time-honored adage. Also included is saving for the “sunny days” like family outings, home renovations, and enjoying fine dining.

Always remember that family first and to further show your love and care for them, make sure that they are financially covered — their health, education, daily expenses, and so forth — in their entire lives. This is your financial responsibility.

Money is a scarce resource. It normally depletes because you use it in your life. Hence, make saving an integral part of your and your family’s existence.

3. Protect your money against financial predators.

Money represents a lot of auspicious things — freedom, security, choices, and opportunities. And as such, a lot of shady characters desperately want your money on their pockets.

Hence, beware of financial criminals like fraudsters, embezzlers, liars, scheming bankers, clever manipulators, leech relatives, sycophants, thieves, charlatans, and exploiters. They all prey on the unsuspecting moneyed individuals and it could definitely be you.

4. Be a financial autodidact.

Reading economics and financial literacy books, magazines, quotations, blogs, and vlogs will positively contribute in helping yourself understand the importance of keeping your financial life in order.

Besides getting a college degree and enrolling in established educational institutions, you can enrich yourself through the myriads of educational resources found online free of charge. YouTube is a video-sharing platform profuse with financially educational content.

5. Collect money quotations from books and songs that effectively impart financial wisdom and post them on your wall.

It is fun to gather money wisdom. Aside from their being clever, you learn how to control your spending on a daily basis and to be money-wise.

For instance, “The Money Song” by British comedy group Monty Python wittily imparted the wondrous nature of money:

“There is nothing quite as wonderful as money!

There is nothing quite as beautiful as cash!

Some people say it’s folly, but I’d rather have the lolly,

With money you can make a splash!

It’s accountancy that makes the world go round!

Money, money, money makes the world go round!”

Therefore, you should keep in mind that money is what makes the world go round!

6. Be a financial educator to your children or younger siblings.

It would be propitious and financially responsible of you to educate the younger members of your family about the concept of the legal tender and how it should be properly used.

Children should also understand the role of banks and put their money there for safekeeping, not just in their piggy-banks.

You can lucidly teach them how they could earn extra money by having savings deposits. It will always be financially negligent to spoil them with toys and other things that catch their fancy.

Furthermore, educating children to engage in annual savings projects or financial targets will certainly enable them to have a launch pad towards financial stability and eventual financial security.

7. Save and use those loose pennies.

Remember Benjamin Franklin’s simplified financial wisdom: A penny saved is a penny earned. It is absolutely true because you cannot reach $100 without a single penny.

I actually save those loose coins on a regular basis and add them to my bank savings whenever I make a deposit. After all, saving money is merely about the basic mathematics operation of addition. And hence, those coins definitely help by adding up to my savings account!

8. Keep a financial planner.

Using a financial planner, make weekly, monthly, and yearly financial goals and stick with them. Tally your day-to-day outlay or expenditures. List the activities and shopping items that you think are unnecessary and do away with them.

Above all, make an inventory of the amount in your bank account and check whether you are able to auspiciously save more or you are unfortunately going bankrupt.

9. Eat healthfully and stay healthy to prevent medical bills.

Getting hospitalized is one effective way to drain one’s finances which absolutely leads to more dilemmas.

When you go food shopping and treat it like purchasing medicine from a pharmacy, like what health expert, Mehmet “Dr. Oz” Öz advised, you would most likely save more money as you relish having sound health.

Moreover, just walk if your destination is just nearby. You can save on gas bills by strolling which is a healthful exercise.

Walking positively contributes to increasing your good cholesterol levels and it certainly clears the mind. Always remember that health is wealth.

10. Be your own financial decision-maker.

I must say I am the homo economicus — the poster child of the Rational Choice Theory in which I maximize my happiness through the frugal financial decisions I make.

As a millennial, you are a young adult. Knowing yourself, your likes and dislikes, and your lifestyle will help you understand where to spend your money. Do not allow your friends or family members to dictate how you will use your personal funds.

If you feel they are giving you sound advice which you think will help you grow your savings, then, you can take their recommendations.

11. Stop the FOMO (fear of missing out) vibe.

I think it is best to be practical nowadays. Being a millennial, I created my own lifestyle, bespoke according to my preferences and my upper middle class background. I do not go with the flow and how much more, give in to external pressures.

Therefore, I recommend that you don’t follow what you see on TV, films, Instagram, and Facebook. Live according to your means, background, and personality. After all, you are absolutely not these popular celebrities you see on social media whose incomes are three-coma figures.

12. Avoid dining out and expensive coffee.

You can treat yourself once in a while at a fancy restaurant of your preference and get the indulgence of pricey coffee products.

Yet, to desire to look “classy” by frequenting signature restaurants and cafes and binging on their drinks are certainly not money-smart ideas. Being a show-off is not smart and it will only cost you.

Plus, get rid of what financial author David Bach coined as the “latte factor.” If you really want to get on with that savings habit of yours, he suggested ceasing unconsciously purchasing those little everyday things that do not contribute any long-term value to your life.

Examples of the “latter factor” are drinking coffee at cafés often, smoking, driving to work daily, eating out for lunch every day, and buying candy to snack on out of sheer boredom.

13. Always have a budget when shopping at the supermarket, malls, and so on.

A budget is a financial plan. It leads you to your spending goal and prevents the wastage of money or its improper use.

As personal finance author Dave Ramsey wisely put it, “A budget is telling your money where to go instead of wondering where it went.”

14. Use coupons or the membership points in your credit or membership cards.

Imagine how much you can save if you use the membership points from your supermarket membership cards for payment. It will make you feel a little “richer” by cutting down your grocery bills.

15. Avoid going to the shopping mall even if it is sale day.

Shop only when necessary and not for retail therapy. It is impractical and financially unintelligent to be a shopaholic nowadays. Furthermore, I think it is a passé and a tremendously wasteful lifestyle.

Shopping malls — huge ones — are becoming things of the past. As e-commerce has momentously taken over the role of bricks and mortars, shoppers should also take practicality and being money-savvy into utmost consideration.

As the 2007 environmental documentary “The 11th Hour” advised, “Frugality isn’t poverty. It is the wise use of resources.”

16. Don’t buy some things which can be acquired for free.

There are websites giving insights about over a hundred items that can be availed without having to buy them from supermarkets.

For example, you can save the tissue paper from the restaurants or fast food outlets for cleaning your desk, the dining table, and so forth. You do not really need to purchase rolls of them from the supermarket.

In addition, you can just request for free water in dining places rather than purchasing bottled water. In this manner, you get to save more of your hard-earned money.

17. Switch off unused lights and home appliances like electric fans.

Britain’s Queen Elizabeth II, despite her immense wealth and stature, has been known to save by cutting expenses when she can. She is conscious of energy costs, too.

According to the Financial Times, in 2011, she posted warning signs around her 775-room grandiose palace that read: “The attention is drawn of all members of staff to the need to switch off unwanted lights. By Order of The Master of The Household.”

One of the Queen’s attendants confirmed that she often took the task upon herself and roamed the halls flicking switches.

18. Create a travel budget.

When traveling, you do not merely enjoy the scenery and the fresh air. Make sure that you have a financial plan as well.

Hence, you will not be tempted to just spend mindlessly. You will not regret having a budget once you are done with your vacation and do the accounting.

19. Pay your credit card bills on time to prevent paying additional charges.

Being a deadbeat credit card holder can save you a lot of money. It will benefit your credit standing, too. I settle my credit card bills at a specific date monthly and after doing so, it certainly gives me considerable relief.

20. Reuse and recycle.

Before you get rid of something, try to think if it could still be used for other purposes later. For instance, paper bags can be used to hold garbage.

The back of the receipts from restaurants or the ATM can be used to write to-do lists and grocery items to purchase. These habits certainly make life easier.

Apparently, money is a responsibility. As a rational adult, you have a choice if you intend to suffer the consequences of being financially fragile or unprotected. Take responsibility of your finances.

Remember, that much needed convenience is at your fingertips if you fully understand the importance of money and how it runs our lives.

As investing powerhouse, Warren Buffett, judiciously cited, “Rule Number 1: Never Lose Money. Rule Number 2: Don’t forget rule number 1.”

References:

https://www.amazon.com/Thrift-Thriving-America-Capitalism-Puritans/dp/0199769060

https://blog.cheapism.com/useless-things-you-dont-need-to-buy/

https://blog.trashbackwards.com/2013/05/15/100-things-you-never-need-to-buy/

https://www.cnbc.com/id/48675778

https://www.cnbc.com/2018/01/05/10-things-to-stop-wasting-your-money-on-in-2018.html

https://www.cnbc.com/2018/03/08/queen-elizabeth-ii-made-9-million-from-her-horse-racing-side-hustle.html

https://www.dailymotion.com/video/x2hwqky

https://davidbach.com/latte-factor/

https://www.ecnmy.org/learn/you/choices-behavior/rational-choice-theory-homo-economicus/

http://engage365.org/the-relevance-of-a-penny-saved-is-a-penny-earned-today/

https://www.goodreads.com/quotes/349829-a-budget-is-telling-your-money-where-to-go-instead

https://www.investopedia.com/financial-edge/0210/rules-that-warren-buffett-lives-by.aspx

https://www.laurengreutman.com/waste-of-money-things-never-buy/

https://www.lifehack.org/articles/money/25-unnecessary-wastes-money-you-dont-think-about.html

http://www.montypython.net/scripts/money.php

http://sixdollarfamily.com/30-things-i-simply-stopped-buying-and-started-making-homemade

http://11thhourfilm.com/

https://twitter.com/Forbes/status/911641568527994882

https://www.youtube.com/watch?v=qNeB6qRvF3Q

About the Author: Sheena Ricarte is a freelance finance journalist. Her research interests include US corporate finance, international economics, and international finance.

Miss Ricarte is also very interested in wealth management, investment management, and asset management.

She admires Mexican billionaire Carlos Slim’s advocacy of corporate philanthropy. Miss Ricarte supports Mr. Slim’s perspective of wealth being a responsibility to leverage in helping the society rather than a privilege which only a few will enjoy.