How Millennials Can Recover From Their Financial Regrets

Establish, manage and maintain a budget

Without a monthly budget and plan, it can be easy to get sucked into buying the latest mobile device, those trendy sneakers or overextending your credit to pay for something that you could wait to pay cash for. But tracking your spending habits and adhering to a monthly budget is empowering as it'll help you balance saving with spending so you can work toward your personal financial goals.

Develop a good savings strategy

There are ways to put money aside, even if your finances seem stretched. There are several strategies to tackle your debt and get out of the hole quicker. One you can start immediately is setting aside a few dollars a month to help establish a savings habit. Additionally, if you scale back on unnecessary subscription services, eating out and online shopping, you can use that money to pay down high-interest credit cards, installment loans and other debts.

Another strategy is for every bill you pay off, continue to use that payment amount and add it to your savings funds. Having it automatically deposited into your account each pay period or monthly will also make it easier. As you build your savings, you can set up a rainy-day fund to cover unanticipated expenses, such as car repairs or home repairs, and eventually, an emergency fund to cover your monthly expenses for at least three to six months to help with rent or mortgage, utilities and car payments.

Invest early and wisely

Considering Millennials' experience with financial markets, debt and the economy, it makes sense if there is hesitation about investing. However, as Millennials start earning higher salaries and increasing savings, they should embrace strategic investing — and there are ways to do it well even in stressful times. And with new technology, apps and free online resources, it’s more accessible and easier to do.

To get started, educate yourself using free online resources such as beginner-focused educational materials on brokers' websites or this beginner’s guide on investing and saving. You can also start a retirement fund, such as a 401(k) offered through your employer or an IRA, to benefit from tax-deferred growth. Make sure you take the maximum contribution amount if your employer offers matching funds to your 401(k). It's free money!

So why does investing make a huge difference to Millenials? Nowadays, there are fewer employer-sponsored pension plans for Americans and the longevity of Social Security is uncertain as funds are expected to expire before Millennials would reach full retirement age, which is 67. Without a proper savings plan in place, Millennials could end up working past retirement age.