How Millennials can get Out of Debt
There’s no doubt that Millennials face a harsher economic reality than their parents did – with lower minimum wages, higher unemployment rates, and crippling student debt that often puts their parent’s mortgage to shame! And yes, many of them have been forced to move back home, take on a second or less desirable job and put the idea of ever buying a home of their own on the backburner.
But they’ve also got something working in their favor – their adaptability, ingenuity, and a willingness to change things up. Let’s look at a few ways that those adaptable Millennials can get out of debt for good!
Turn a hobby into an income stream
In a marketplace where jobs are scarce and wages are less than ideal, Millennials are quickly learning that the traditional 9 to 5 alone is unlikely to get them to where they want to be by the time they retire. Few of them have the resources needed to start up their own business (yet), and they tend to be averse to taking on any more debt, so what do they do? The Internet has revolutionized the way we do business, and it’s opened global doors that our parents never dreamed of – and wily Millennials are taking advantage big time.
Whatever your skill set, your potential market is no longer limited by geography – the whole world is at your fingertips. It’s everyone’s dream to get paid to do something they love, and with a global audience, there’s a good chance that someone’s going to love what you do! As they tend to be creative anyway, Millennials often enjoy writing their own blog or recording their own YouTube videos, which can be monetized for advertising revenue – if you manage to get a big enough audience.
It’s very difficult to predict what new content audiences are going to love so much they end up going viral, and which are going to get overlooked, so there’s an element of luck and timing involved. After all, not only is your audience global, but all your competition is too! That said, there are thousands of bloggers, YouTube stars, online coaches, ebook writers, app developers and many, many more who not just make a second income online, but make a really, really good one. For those who are dedicated and determined enough, it’s a real possibility that the job that started as a hobby could turn into a lucrative business that gets you out of debt forever. One thing’s for sure, it’s worth giving it a shot!
Consider where your natural talents lie and what you get complimented on frequently. Do people find you funny? Why not start a weekly comedy show on YouTube? Do they like the way you do your makeup? Film a few tutorials. Have strong opinions and a different way of looking at issues? Start a current affairs commentary blog. Are you good at making children’s mobiles, bird feeders or bespoke clothing? Start your own store on Etsy or create your own website. The options are limited only by your imagination, and it’s an incredibly rewarding way to make extra money and pay off your debts faster!
Get thrifty, get real, and make a plan
Finding creative ways to save money isn’t something Millennials find shameful anymore, far from it. Shopping for better deals and learning to live within your means in a way that’s less harmful to the planet is one of the best trends among Millennials, and it’s a goal we should all strive for. Getting into the habit of comparing deals, finding cheaper alternatives, and actually taking the time to decide whether you really need something before you buy it are extremely valuable on your journey towards a debt-free existence!
Millennials tend to be bad at budgeting, and even worse at sticking to their budgets! If you’re one of them, you might find it helpful to budget on your own turf – online. There are hundreds of free apps available that can help you of this is one of the areas you struggle with. Being forthright and open with your friends about your struggles might also be a good way to let them know not to pressure you to participate in expensive activities.
Paying off debt is the first step towards financial freedom, and the best place to start is by getting an honest review of what your situation really is. If you find yourself feeling out of your depth and under too much pressure to make your monthly repayments, then contacting a debt review company such as Zero Debt and talking to someone who is sympathetic and knows how to help you can be a great help. Just having a plan and an achievable goal in sight is an unbelievable psychological boost!
By combining all of these skills – generating an additional income, spending your money more wisely, and having a plan to tackle your existing debt – Millennials have all the tools they need to get out of debt for good. Good luck!