Financial Outlook Causes Mental Strain on Gen Z, Millennials

Chicago — Many Gen Zers and millennials feel their finances are taking a toll on their mental health.

Gaining financial knowledge and starting a plan is key to help them feel confident about the future. 

Here are five ways to achieve your financial goals.

Get your debt in order

A lot of pressure can be relieved by finding ways to better manage student and credit card debt. 

Student loan borrowers may be able to take advantage of the government's income-driven payment plans. They allow borrowers to make payments that are more affordable based on their income. Any residual debt will be canceled after 20 to 25 years of consistent payments under an income-driven program, according to Yahoo Finance.

Make a financial plan

Two-thirds of millennials and Gen Z are anxious about overspending during the holiday season, but only 38% are budgeting, according to Yahoo Finance. Creating gifts with meaning or choosing to skip out on gifts could be cost-effective strategies for saving money

Make a list of all your regular expenses on a notepad to determine how much discretionary spending you can allow each month.

Get an emergency fund

Put some money aside each month in a high-yield savings account so it can grow, as regular checking and savings accounts pay next to nothing in interest.

Experts recommend saving three to six months' worth of costs for emergencies, if possible. However, even if it is a modest sum, make sure you invest for the future. Don’t be discouraged by the small amount, remember that saving a little at a time now can save you big in the long run.

Seek assistance

Never be hesitant to discuss your financial anxiety with someone, whether it's a mental health expert or a financial advisor.

A qualified financial planner will assess your circumstances and assist you in meeting your objectives, such as retirement planning, debt management, and investment management.

Financial therapists are experts in both mental health and money management. They can aid you in rethinking your relationship with money, addressing your coping strategies, and building a spending strategy.

Increase your income

In addition to your 9-to-5, strive to get financial autonomy by launching a side job or investing.

Digital markets are enormous and full of enthusiastic purchasers willing to purchase products of many skills, ranging from writing to art and voice acting.

If you don't have the time, another option is to invest. Some investment applications provide automatic portfolios for as little as $1 each month. Some of them will even pay you to use them.