About 65% of millennials worry about their financial situation, and since the recession, they are understandably nervous of the financial services industry. Many now rely on the Internet and their own research, rather than the advice of a financial adviser. However, by doing this, they are not necessarily accessing the best or most reliable information.
Young people are understandably nervous about their ability to purchase a property and use the services of a Home Buyers Survey London company such as https://www.samconveyancing.co.uk/Homebuyers-Survey/Home-Buyers-Survey-London to ensure their chosen home is fit for purpose. This is due to the growing concern that saving for a house deposit has becoming a tough challenge.
What can millennials do to ensure they are in the strongest possible financial position ready for purchasing a new property?
Find a certified financial advisor:
Only 40% of young people surveyed cited financial experts as their top source of information. It seems millennials are not convinced that paying for advice will be worth it. However, the sooner they are able to access reliable, prudent advice, the sooner they can gain control over their financial literacy. Financial advisers have access to a whole range of different tools to help them and can help to project the amount of income that you will need in order to be able to afford your given mortgage as well as the amount you realistically need to save for a deposit.
Put together a financial plan:
Although it can be difficult to make a plan which will not see immediate benefit, millennials need to trust that in the long term, they will see financial gain. For example, having made the decision to save £50 each week for four years, an individual might find it hard to envisage how this will translate to the long term ‘tomorrow’ perspective. In fact, at the end of the four years they will have saved £15,000.
Automate cash flows by setting up individual accounts, specific to each goal, such as travel fund, house fund, savings etc. Automated transfers to each one on a monthly basis will remove the temptation to spend the money on something else or eliminate the chance of forgetting to put the money aside manually. Sometimes, it can feel incredibly overwhelming to look in detail at your finances and spending habits. However, it is an important step to take.
Even the very young and healthy can be faced with unforeseen events. It is important that individuals take out an insurance policy against risks such as illness or death. This will ensure they or their family will not have to incur large and unexpected costs should they be unlucky enough to suffer an accident or unexpected illness as well as sometimes being a requirement of certain mortgage companies.
As an additional back-up plan, they should also set aside a ‘rainy day fund’ which can be drawn upon should an emergency happen.