Are you trying to figure out how you can survive financial difficulties? You may want to get some financial advice from Millennials.
You may be wondering, why would they be the best generation to give you financial tips? They were the ones in trouble when the Great Recession happened. They got out of college with a lot of financial obligations and they had problems paying it back because they graduated just when the job market was very weak. This is the generation burdened with so much debt.
According to an article published on CNBC.com, Millennials are the generation with practically the greatest debt problem. The article cited the study done by iQuantifi that reveals how 18 to 35 year olds have increasing debt loads as they get older. This generation is troubled by all kinds of debts: student loans, mortgage, and credit card debt. Those who are between 21 to 25 years of age has an average of $13,116. Those in their late 20s have a higher average at $46,622. Those who are the oldest in this generation, those in their 30s, are currently saddled with an average of $69,552 worth of debts.
With this much debt problem, do you really think it is the Millennials that can give the best financial advice? How can you possibly get something out of them that can teach you to survive financial difficulties?
4 mindsets being used by Millennials to deal with debt
The key is to study their mindsets – at least, when it comes to dealing with debt. If you need advice on how to solve the financial difficulties when you borrowed too much, then you need to look at the attitudes of the Millennials.
An article from Bankrate revealed that Millennials seem to continue smiling despite their debt situation. After reading through this article, we found 4 specific mindsets that they are using to help them survive financial difficulties.
Life is hard. Deal with it.
Although they are burdened with student loans, you do not see Millennials staying at home and moping around. They go on with their lives as if they are not having difficulties with their finances. They travel, and have fun – you can see it on social media. This does not mean Millennials are careless. It is just that they know that life is hard. But instead of dwelling on that, they are simply dealing with it. When you focus too much on the difficulty, it hard to move on. Sometimes, it is easier to accept that this is the reality that you have been dealt with. Once you have that acceptance, then you can concentrate on thinking about how you can get over your current problems.
It becomes bearable with friends.
The same article from Bankrate revealed that Millennials take comfort in the fact that whatever they are going through is the same situation that their friends are in. Remember that this generation is the one that is most visible in social media. They like being socially active. This is a great thing. Sometimes, no matter how tough the problem is, you usually find comfort in the fact that someone can relate to your situation. Since Millennials go through practically the same financial troubles as their friends, that means they can talk to each other about it. When you have someone to talk to, things get bearable. You find yourself being able to survive financial difficulties.
Better late than never.
Another mindset that you need to take note of is that Millennials do not mind delaying certain milestones. It is not like they do not want to get married, buy a house or have children. They do. But they know that they cannot force it if they cannot afford it. This is why they choose to wait. Most of them do not wait until their debt problems are completely paid off. That would take a long time. But they do wait until they have their debt in control. If their finances seem stable enough, that is when they plunge in to fulfill the milestones in their life. Better late – as long as they are in a more stable financial position.
What doesn’t kill you will make you stronger.
Lastly, you need to adapt the mindset that what doesn’t kill you will make you stronger. This mindset gives Millennials hope that they can survive financial difficulties – no matter how big it is. Hope is important because it is what will help motivate you to get through tough situations. It is not about how big the problem is – it all depends on what you are willing to do so you can overcome it.
These mindsets are actually something familiar to most of us. However, Millennials have proven that these are effective in helping them survive the difficult financial situation that they are in.
What can you learn about the financial problems of Millennials?
These mindsets, if you implement them in your life can make your financial problems easier to live with. It might still be difficult, but it will not seems too impossible. You will not feel so hopeless about achieving debt freedom.
There are four important actions that you need to do based on the 4 mindsets that you can learn from the financial plight of Millennials.
Accept what you cannot control. Most people feel stressed about their debt situation because they are so fixated with things that they have no control over. While the student loans, mortgage or credit card debts are your own doing, the act has been done. You need to let it go and accept that you are indeed in debt. You know how acceptance is crucial in helping you get over the loss of someone? The same is true when it comes to your ability to survive financial difficulties. The earlier you accept the situation, the easier it is for you to move on and work on the solution. At the very least, you will not lose heart despite that many sacrifices that you need to make.
Avoid comparing. The next act that you need to work on is your habit of comparing yourself to others. It is important for you to realize that no two journey is the same. Although you and your friends have your respective financial troubles, there are various circumstances that will still make your situation unique. Try not to compare if your friend is quick to solve their financial difficulties or they do not seem to be bothered too much by it. Just focus on what you have to do. The only time you should look at your neighbor is when you need the motivation to push forward with the task that you have set before you.
Make sacrifices when necessary. Another act that you need to work on is to make sacrifices as they are needed. Forbes.com revealed an interesting survey that shows what some people are willing to do in order to be free of their student loans. Can you believe that 30% of the respondents are willing to sell an organ if it meant the removal of their debts? While it will surely not come to that, you need to be ready to make sacrifices that will help you increase your debt payments so you can quickly get out of your financial troubles.
Learn to use what you have. The last act is to learn to use what you have before you. While your financial resources may seem limited and unable to pay off your debts, you can always find something that will help you make ends meet. If that means you have to use your talents and skills to earn extra money, then that is what you should do. Instead of feeling sorry about your situation, you may want to use it to fuel your motivation to be debt free. That should help you survive financial difficulties – no matter how big they are.