“I spent HOW MUCH?” THE SPENDING CONFLICTION
If it seems like there are just too many must-have things to buy, you’re not alone. Everyone’s finances are different, but a new study by Northwestern Mutual shows that the temptation to spend money is holding millennials back from sticking to their financial plan. That’s despite 64 percent of young adults recognizing the need for a financial plan to withstand up-and-down market cycles.
It’s not easy to keep spending in check. In fact, the study found that one in three are prone to excessive spending, and one in three used the money they set aside for other things on themselves.
Okay, so saving is hard and spending is easy. But the study found something else. Spending too much leads to financial anxiety. 28% say this anxiety affects their job performance and 23% say that it makes them physically ill.
That’s serious. Now it’s time to do something about it.
Start with a financial plan and stick to it. This can be basic stuff like don’t take that 401(k) money for a trip, budget all monthly expenses, set aside money to go directly in a savings account from every paycheck.
Second, in addition to a monthly plan, set a goal and plan for it. Take your big dream, write it down, and plan to make it reality. Whether it’s that big trip to an amazing destination, a new car, or big-ticket stuff for your home, plan it out and then make your dream reality.
Learn more about Northwestern Mutual’s Planning & Progress 2017 Study.