Money matters: Essential financial advice for millennial professionals

Money matters: Essential financial advice for millennial professionals

The generation of millennials, also called ‘generation Y’ comprises individuals born between 1981 and 1996. The millennial generation has specific financial challenges that were not faced by the generation before theirs. This is because of a number of reasons, including the Great Recession, inflation, mass layoffs being carried out during and after the pandemic, sky-rocketing rent, especially in big cities like Bangalore, student debts, the need to live to the fullest, ‘in the moment,’ instead of saving for retirement or creating emergency funds, and more.  

If you’re a millennial and find yourself in the middle of various financial challenges, here are some actionable budgeting tips and investment advice to help you take care of your ‘millennial finances’ the navigate financial challenges of your times to build a secure financial future for yourself:

Treating savings as a bill

Since millennials desire to live life to the fullest, they often end up spending most of their monthly income, and end up saving only a small percentage of it, if any at all. Treating one’s savings just like a bill, just like other bills such as rent, water, and electricity bills, is one of the smartest saving strategies for a millennial. The idea is to save first, spend later. Bringing about this little change would enable millennials to accumulate adequate savings and create an emergency fund. 

Long-term and short-term FDs

Often millennials prefer Fixed Deposits or FDs of larger amounts over long periods of time. While this is certainly the smart thing to do, the smarter thing to do would be to also create small fixed deposits for small periods of time, along with bigger and longer FDs.

Awareness of government schemes 

It is important to stay aware and make full use of the government’s schemes. Schemes such as Surya Ghar Muft Bijli Yojana aim to provide 300 units of free electricity to 1 crore households every month. The Sukanya Samriddi Yojana aims to build a fund for the education and marriage expenses of the female child. 

Tracking and cutting down on expenses 

Simple ways to do this is to download expense tracking or financial planning apps, or simply create an excel sheet with a basic template for tracking expenses and savings.

Once you are able to determine over a period of time where most of your money is being spent, it becomes possible to control such spending by seeking alternative options. 


Millennials are the generation of side-hustlers after Gen Z. It never hurts to make a little extra cash over your regular income. Millennials must seriously consider holding on to one or two side hustles that can at least pay their personal or entertainment expenses, and enable them to save a larger chunk of their salary and utilise it towards accumulating savings or creating an emergency fund.

Consulting a chartered accountant or financial adviser 

Somehow most millennials have a mindset of self-sufficiency and do not seek out financial advice from experts and professionals, unless they are planning to start their own business. However, individuals not seeking to start their businesses must also seek out advice from financial experts because doing so is a good investment of time, energy and money. Financial experts and planners can provide customised advice, specific to an individual’s requirements, and long-term and short-term goals. This would beat generic reels giving free financial advice any day. 

Shifting from UPI to cash

After the introduction of UPI, most of the Indian population has shifted to this method of payment, which has also been encouraged especially since the pandemic began, primarily for reasons of convenience and ease. However, it is this convenience of payment that also contributes to excessive spending. Experts suggest a ‘return to cash’ as a mode of payment, because when one physically gives money away, it feels more real and they end up spending less.

Create a retirement fund 

The future is unforeseen but can be predicted. Millennials must consider creating a retirement fund for their future. Many government schemes work towards this end. The Atal Pension Yojana aims to provide a guaranteed per-month pension at the age of 60. Any individual between the ages of 18 40 can apply. The National Pension Scheme is a voluntary retirement scheme that permits individuals to make pension contributions to it during their work life. 

Investment education

Millennials must educate themselves about various investment options. Investments in cryptocurrency, stock market, NFTs, and mutual funds, are all options, but not possessing correct and adequate knowledge about these, is an impediment when it comes to investing. Even buying a house and renting it out to tenants is a smart investment, especially in metropolitan cities which have a constant influx of people from smaller cities. Another benefit of investments is that most of them are non-taxable and ultimately add to one’s savings.  

Being financially aware, educated and sound becomes crucial for millennials who have entered a world wrought with various financial challenges. Such soundness would benefit not only the millennials but also Gen Z which is standing next in line to them, already making their way into the workforce. 


  1. How can millennials effectively balance saving and spending?
    A. Millennials can balance saving and spending by treating savings like a bill. This means prioritizing savings just as they would other essential expenses like rent or utilities. By saving a set amount first and then budgeting the remaining income for spending, millennials can ensure they are consistently building their savings and emergency funds.
  2. What investment strategies are suitable for millennials with varying risk appetites?
    A. Millennials can benefit from diversifying their investments to suit their risk appetites. For those with a lower risk tolerance, short-term and long-term Fixed Deposits (FDs) offer stable returns. For those willing to take on more risk, exploring options like stocks, mutual funds, or even cryptocurrencies could be worthwhile, provided they educate themselves thoroughly about these investment avenues.
  3. Why should millennials consider consulting a financial advisor?
    A. Consulting a financial advisor can provide millennials with tailored financial guidance that aligns with their individual goals and circumstances. Unlike generic advice found online, financial advisors can offer specific strategies for budgeting, saving, and investin