Millennials and their (Acute) Financial Stress
Oh damn, the Great Recession. How cruel you were. Thanks in large part to this severe economic downturn, millennials have had to enter work and strike out on their own against some pretty nasty barriers. Cumbersome student debts alongside rising costs of living and inflation have made things like ‘acute financial stress’ (AFS) a worrying reality amongst this generation.
In an earlier article we described our Top 5 Mistakes made by Millennials, but today we’re going to go into a little more detail about what sort of financial pressures millennials face, and ways that we can deal with them. Take a deep breath, and don’t panic. We got you.
At the top of the list, first and foremost, chief amongst these problems, is debt. Studies show that debt is the number one cause of stress for millennials, rather than the commonly misconceived idea that the primary reason for their financial concerns are from frivolous spending on vintage clothes and bougie coffees. While choosing to pay for a top education is more often than not a wise decision, the financial aftermath can be daunting for the unprepared, and many of us are not equipped to deal with debt.
However, we can prepare, and here’s how. Millennials don’t often get the chance to learn about this sort of thing but through short term savings, emergency funds and wise investments, we can shore up a financial buffer and begin to make returns large enough to put a significant dent in that debt with ease. If you’re struggling to find the money to put aside, then check out our article on spending less and earning more.
“Planning, budgeting, preparing, saving. It comes in many forms, but it’s really the only remedy for high costs of living.”
Another huge trigger of Acute Financial Stress amongst millennials is the explosion in rising cost of living. Large cities where all the opportunities are to be had, are also the cities which threaten to lure you in with all their fancy sights and sounds. Without sufficient planning, you can blow through early career wages on unnecessarily expensive lunches, drinks, transport and the ever-deadly rent. But there’s really no excuse! Planning is the magic word here. Planning, budgeting, preparing, saving. It comes in many forms, but it’s really the only remedy for high costs of living. If you’re sensible, you can get by in these cities just fine, while your career picks up and you start to see the bigger paychecks roll in. And if you’re the sort of person who’s desperate to go out and see things, experience things, then you don’t worry either. There’s always a way to live well on a modest budget. Check out pop up markets, free events, and the thousands of special offers that come and go every single day in these vibrant locations.
Worry about the future can also be pervasive, and a lot of millennials worry that they’ll not only have to support themselves but that they’ll also have to support an aging generation of parents.
“…being more prudent with it today might just help the whole family more tomorrow.”
However, while well over half of millennials said it seemed likely they’d be supporting their parents into retirement, only a quarter of older generations agreed! Maybe this is a suggestion that there’s some miscommunication going on, and that your money might be being spent as efficiently as it could be. That’s is not to say it’s not a nice gesture to support your parents, but perhaps it’s time to start focusing on your own short term financial goals — if you don’t absolutely *have* to spend that money on parents now, then being more prudent with it today might just help the whole family more tomorrow.
Just assess your particular situation and you might find that there’s less reason to worry than you think. Keep calm, set a portion of your paychecks aside as savings, and over time you’ll find yourself much better off. And if you manage to put this into practice, then all’s the better! You can afford to relax a bit, and in doing so make some sensible savings and earnings which will be better spent later, as well as leaving you in a much better state of mind yourself.
What else could millennials be doing to relieve that financial stress? Well, one could look at the recent boom in startup culture and see a golden opportunity for real job satisfaction. Considering current levels of competition in finding a ‘traditional’ job, some studies have suggested that a practical way for younger professionals to get further, faster, in their careers, is to join a smaller more agile company (or just strike out on their own!).
Rather than having to labour away in search of the soon to be outdated ‘prestige’ positions of the past, startups, or at least smaller companies, offer their employees a chance to personalize their career, and have real autonomy over their own lives. Big companies will push you hard, making you work late and weigh you down with tasks and emails, all the while as you see yourself making no tangible impact on the progression of the wider business at large. Smaller companies will also push you hard, but you get the satisfaction of creating change, which is a reward in itself.
For those of us who are already locked down in work, and are feeling the stress of keeping up with a demanding job, take time to breath. Schedule times off in the day for yourself, enjoy your lunch break, and give yoga or meditation a go. These are tested methods which are guaranteed to relax you in a chaotic day.
We’re not telling you to abandon whatever you’re doing right now in pursuit of a pipe dream, but it’s a fact that startup culture is booming. As you explore possible career routes, just consider the alternatives as something which might be better suited to you, something which could bring down the chances of Acute Financial Stress and (quite possibly) bring in some really big earnings!
As you should by now know, there’re plenty of opportunities to feel really good in spite of the conditions around us. From simple planning to a frank discussion with your parents about just how much financial support they really need, there are so many steps to take to avoid AFS and worry that you’ll be standing tall against the rain and thriving in no time at all!
A quick reminder, however: we know how real these situations can be. Mental health — your own mental health — should always come first, and if you ever feel like your financial situation might be having a negative impact on your own well-being then there is absolutely no shame in seeking help. One of the best places you can go is Mind.org.uk for those times when you just need someone to talk to and help you out.
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