Millennial’s Financial Management Tactics Compared To Older Generation

Through a press release, the American Psychological Association stated that one common stress among all generations is financial concerns. They further revealed that while 85% of millennials cite money and job satiability as significant causes of stress, only 71% of the older generation views these factors as sources of stress. As a result, millennials seem to have different financial management factors compared to the older generation, as discussed below.

Technology and Online Platforms Are Important Sources Of Advice

In a report titled, Millennials and Wealth Management Trends and Challenges of the New Clientele, Deloitte stated that the past financial crisis and the volatility of the financial markets have made generation Y very cautions and conservative with regard to financial management. Compared to older generations, this generation ensures that it does adequate research before settling on any financial option.

Millennials heavily rely on technology for financial advice and subsequent decision making. As a matter of fact, the report showed that up to 57% of millennials would trade their bank relationship for better technological solutions- a trend that is not seen with older generations.


The Deloitte report also showed that generation Y makes fewer financial risks compared to older generations. While generation X have deeply invested in stocks, less than 30% of millennials have chosen a similar path.  They mostly prefer physical assets and cash, consequently demanding only clear, simple and straightforward financial solutions.

The older generation have been trusting the government and financial institutions with their retirement benefits, a trend that generation Y finds rather too risky. As a matter of fact, 51% of millennials do not trust the social security systems for their retirement needs and instead look for other tangible options that banks are rolling out. Notably though, they still believe in retirement savings and actually save at least 13 years earlier than baby boomers for their retirement.

They Don’t Make Financial Decisions Alone

The older generation completely trust their financial advisers and act without second thoughts. Millennials on the other hand, seek classical investment advice and greatly consult their peers and the media before implementing their advisers’ recommendations.  Actually, only 10% of them make financial decisions without the input of media and peers.

They Are Self-Directed In their Investments

Generation Y is self-directed, posing to be more of a challenge to deal with than older generations. Millennials assume that they understand the markets and are well conversant with different products and trends. Contrastingly, and rather interestingly, 84% seek investment advice, indicating that they are indeed they in need of world class advice even more than the older generation.

Marrying Late

A Pew Research Center’s study showed that only 26% of millennials are married. This is a lower rate compared to older generations (36% of generation X and 65% of the silent generation)  when they were at a similar age bracket as today’s millennials.

The study suggested that the late marriage trend was a way of millennials managing their finances, since higher education and better careers promise greater financial security in marriage. Therefore, they take longer periods in school securing their future. Millennials with lower levels of education and income strongly stated that they believed that they lacked an essential prerequisite for a strong marriage.

Due to these observable differences, the current investment trends are increasingly turning out to be different compared to the past. As a matter of fact, the entire world has been affected, with current economic forces shifting from the previously dominant factors.

Adding Another Credit Card Help Your Finances

All you hear about is how credit cards are bad. From your mother to your uncle, all adults warn you away from the dangers of credit your entire life. You are indoctrinated. Then, you read personal finance blogs that tell you to always pay cash, for everything, all the time.

But what if credit cards weren’t as bad as you think? At least, not if you use them responsibly. What if applying for a credit card or adding another one could boost your credit score? Here are few instances where doing just that can help you, not hurt you, as long as you follow a strict set of rules.

1. Add Another Card to Increase Your Total Approved Credit

You don’t always have to apply for a credit card in order to buy something specific. You can apply for a card just to have one open. And having another credit card open can help your other accounts. Figure out your credit utilization ratio. If you currently have one credit card with a $5,000 limit, but you’ve charged $3,000 to the card and are only currently paying the minimums, you are using up over half of your available credit – that’s not good for your score. You need to try to reduce your credit utilization ratio to 30% or less. An easy fix is to apply for another card with a $5,000 limit and simply don’t charge anything to the account. All of a sudden, your total utilization ratio falls within the recommended limits, you look like a stronger borrower because you have more available credit, and you didn’t increase your debt load in the least.

2. Establishing a Varied History

By now you know that to raise your credit score, you’ve got to have something on your record. No credit equals bad credit in the eyes of lenders. So maybe you applied for one consumer credit account a long time ago. You’re not helping your case. Lenders look for longevity, but they also look for variance. Have you had success keeping many different types of credit accounts in good standing? Apply for a department store card to add a little variety to your record. You could see an increase in your score as a result.

3. Regular Use

What if you have a credit card, but you never use it? Then your account will go stagnant. With nothing to report to the credit bureau, how can you expect your score to go up just because you have an open card? If you don’t want to use the card you currently have, or you simply don’t think to use it, investigate getting another card that you WILL use. Maybe find a credit card that will give you points on gas purchases. Pay off the balance at the end of the week and you’ll never have interest fees, you’ll gain points that may be redeemable for cash and your credit score will increase. Get a credit card to your favorite clothing store. Use it to make purchases for which you already have the money. Whatever card you add, make sure it’s one you feel comfortable using on a regular basis in order to provide data that can help raise your credit score.

Don’t completely discount credit cards – they have their uses, and some of those uses can help you out in the long-term!

How to Finance Your Home Improvement Project

No matter how old your property happens to be, there’s a good chance that at some point, you’ll be faced with a pretty big home improvement project. Maybe you’ve got a basement waiting to be finished; or perhaps you’re looking to increase your space by building an addition. No matter the task at hand, the biggest impediment often comes down to money. Home improvements can be expensive, and unless you’ve got a wad of cash sitting around, you’ll need to find a way to finance your big endeavor. Here are some popular options for you to consider:

Credit Card

Just as you can charge your groceries and cell phone bill, so too can you use a credit card to finance a home improvement project. You may need to split the project among several cards depending on its cost and your credit limit, but the benefit is that you don’t need to go through a time-consuming application process or worry about getting rejected for a loan. As an added bonus, if your credit card offers rewards points or cash back, you can rack up a ton of those by charging a big project. The downside, however, is that credit cards tend to come with high interest rates. If you think you can pay off your balance fairly quickly, a credit card may be a good bet. But if you’re expecting it to take years to pay off that project, you may want to find a different way—otherwise those interest rates could come back to haunt you.

Home Equity Loan

A home equity loan is one that uses your property as collateral so that you’re borrowing against the value of your home minus the amount left on your mortgage. With a home equity loan, you’ll pay a fixed rate of interest, and whatever interest you pay is tax-deductible, which is a definite plus. On the other hand, you might face closing costs and other fees in obtaining your loan. You also run the risk of foreclosure in the event that you’re unable to make your loan payments as scheduled.

Home Equity Line of Credit

A home equity line of credit works like a home equity loan in that your property is used as collateral, but rather than take out a specific amount up front, you’re given access to a certain amount of money that you can withdraw at various points over time. The interest rate on a home equity line of credit is usually variable, which means it can increase down the line. On the plus side, any interest you pay is tax-deductible.


Another option for funding home improvements is to refinance your mortgage, take out a larger amount than what you need for your home itself, and receive the difference back in cash, which you can then use to pay for your project. You’ll pay closing costs, but if you’re eligible for a good rate, this may be the best way to go. In some cases, you may be able to refinance at a low enough rate that you’re essentially making the same monthly mortgage payment but now have additional cash to cover your project.

Before you start looking into your options for financing a major home improvement project, take the time to crunch some numbers and decide whether you’re better off updating your existing home or buying a new one. If your project is really expensive and complicated, it pays to see whether you can find a home with a slightly higher price tag that better meets your needs and doesn’t require quite as much work.

What It Takes To Make It In Business: Three Surprising Qualities That Prove Essential

We all know that successful entrepreneurs are passionate and creative, hard-working, and committed individuals. But if you look at who has had success, you’ll consistently find another set of qualities.

Resilience in The Face of Failure

A research conducted by the University of Gothenburg established ability to learn from failures as one of the predominant traits of a successful entrepreneur. As a business owner, each failure ought to be interpreted both as a challenge and a learning opportunity. A particularly famous example scenario is that of the late Steve Jobs, who built a business from his garage and created jobs for over 4,000 individuals, only to be laid off by the very CEO he had earlier employed. Instead of giving up on the whole concept of business, Jobs dusted himself and used the opportunity to redefine himself.

Flexibility and Adaptability

Although passion is highly encouraged in business, it shouldn’t make you rigid by limiting your flexibility. The business environment is highly dynamic- markets are consistently changing and so are the influencing factors. The best way to tackle this is being flexible enough to adapt to any changes by aligning your business to reap maximum benefits from them. If for instance, the product you’re passionate about doesn’t go well with your target consumers, you need to revise it and develop a much improved one. It’s therefore advisable to adapt to the market needs whenever you realize that the products of your passion are not necessarily what the consumers would prefer.


Because of its dynamic and fluid nature, the business world is best suited for open-minded individuals. You need to have a sharp mind that is always willing to consider feasible options to improve your operations and overall business productivity. That means being open to criticism from all parties, including inexperienced businessmen and your employees. By heeding to constructive criticisms, you’ll be able to effectually explore creative ideas and convert them into working solutions for your business.

Open-mindedness is one of the most critical factors which have driven business evolution. Thanks to it, most of the successful businesses have evolved into different enterprises compared to what they were initially limited to. Take Google for instance- it’s progressively exploring other ventures like motor vehicles, an entity which is different from its mainstream activities.

How to Find Online Business Opportunities

Online businesses are progressively surpassing regular offline businesses thanks to the ever expanding World Wide Web. According to a Pew Internet Research report published in 2013, more than 85% of adults in the United States regularly surf on the internet. They majorly use it for social networking and shopping- with 97% of consumers, through Google’s ecommerce research conducted in 2013, claiming that they use the internet to search for products and services. Through an infographic published in 2015, Nextopia further accentuates this issue byrevealing that 62% of consumers are always willing to complete their purchases online, largely because of increased convenience.

With such a ready market, the internet is considered the single most expansive and promising platform for entrepreneurs to build their respective businesses. Sadly, only a small fraction of business owners recognize the power of the web. According to Google’s ecommerce research report, more than 58% of small businesses are yet to establish a website. That leaves about 40% of small businesses with the power of leveraging the internet’s increasing potential. But then again, less than a quarter of them are implementing the requisite strategies to comprehensively capture their target market.

Going by these statistics, it’s evident that the internet is severely underutilized. There are still plenty of opportunities for aspiring entrepreneurs to establish themselves and subsequently build empires. So, where should you begin? How can you find sustainable business opportunities and subsequently build your own brand?

Find a Need to Fill

It’s a common mistake for unseasoned entrepreneurs to focus on the product first before embarking on the market.  To increase your chances of business success, consider beginning with the latter before embarking on the former. Comprehensively assess your market to identify current and growing needs, then subsequently devise a solution that you’ll sell in form of products and/or services.

Since the needs you identify will form your business foundation, you need to only focus on the most critical ones that that are in sync with your personal interests. That means evaluating yourself too to determine solutions that go along with your skills and expertise. If this process proves to be a little complicated, you could seek help from Google Consumer Surveys to comprehend what most consumers are after. In case you identify a need that’s already being met, you could consider developing better solutions than your future potential competitor.

Analyze How Others Solve Problems

Everywhere you go, you’re probably surrounded by many problems or needs which other entrepreneurs have tried solving through online solutions. By paying close attention to the detail, you’ll grasp sufficient information and tips which could subsequently help you identify additional opportunities and ultimately set up a business.

Observe how ecommerce sites are organizing their business- their website designs, customer interaction, marketing strategies and competition countering measures. The consequent ideas you get could be used to further refine your opportunities and position yourself even better as you prepare to start a business. In some cases, you could identify a business problem, consequently establishing a B2B type of business to address them.

Proceed With Caution

The internet is as diverse the standard market. It extends to both extremes- good and false opportunities. Since online based fraudsters and conmen understand the rat race of business very well, they’re fond of preying on desperate individuals seeking to monetize online opportunities. It’s therefore advisable to proceed with caution especially when:

  • You are required to pay an upfront fee just to gain access to a business opportunity. Most of the scams even require you to recruit other naïve ‘members’.
  • You are required to pay a regular fixed amount of cash on your ‘membership’ regardless of whether you make money or not.
  • The opportunities presented to you do not have sufficient background information and backing
  • There are guarantees of making a lot of money in a relatively short period of time. For instance, you may be attracted by an ad requiring you to sign up and make USD 10,000 per week possibly just by liking a few pages on social media.
  • You can’t trace genuine members who’re actually benefitting from the said ‘promising opportunity’.

Map It

Many entrepreneurs are fond of seeking opportunities by casting a wide net, possibly trying to capture as many prospective customers as possible. Taking this principle too literally however, could eventually cost you your business. Although it’s advisable to be aggressive, it’s equally important to be strategic and calculative by starting small. That means mapping your opportunities and business by focusing only on the core elements.

Mapping your resources and dedicating them to a specific target market is a much more effective strategy, especially to small businesses, than splitting the resources between unspecified goals for an indefinitely wide market. One of the methods of achieving this is focusing on your location first before growing to spread your products and services to the rest of the world. Since mapping strategies depend on the type of business, resources and consumer needs, you should comprehensively assess these three elements as you define your opportunities.

Assess Your Resources

Lastly, analyze your resources, both offline and online, to understand your capabilities in terms of the opportunities and business types you may be able to handle. Although you could eventually begin compiling additional resources after setting up your business, your current resources greatly dictate your ability. Having technical expertise in one type of business for instance, could significantly boost your chances in that specific industry compared to other businesses.

As you make up your mind on online businesses to pursue, remember to build sufficient resilience, especially against failure. Although failures may pull you back resource-wise, they are good learning experiences. If you fail therefore, you should have the strength and determination to dust yourself and proceed with other ventures- after all, each business is a risk, with a potential of failing or succeeding. What makes the difference is how you manage your risks.