3 Barriers to Financial Security and How to Overcome Them

There are three consistent barriers that millennials face when attempting to get their finances in order. My goals is to speak to each one and give practical advice on how to push through each barrier.

Barrier 1: Overcoming Immediate Gratification

The human brain is wired for instant rewards. We desire immediate results whether we are dieting and working out or changing our financial habits. It can be hard to wait on the reward.

Social media doesn’t help! The constant exposure to the things and experiences we desire eat away at our patience. Waiting to be able to afford what we want seems impossible.

More than older generations, millennials want to be included. We suffer more from the Fear of Missing Out and are more willing to sacrifice just to do what we want.

Overcoming the desire for instant gratification:

Everything that glitters ain’t gold.

Much of what is presented on social media is fake. People rent private jets just for pictures, making you think they travel in that way. Even fitness gurus who use surgery and steroids to present the “ideal” body. They want you to believe its attainable if you follow their programs.

Don’t fall to the trap of comparison. Engage with social media for leisure and for inspiration only!

We Love to See it

People are more excited about shoes, cars, bags, vacations, etc. Then they are about owning stocks. Why? They can’t wear the stock. They can’t show it off. Nobody will know how much stock you own, but they can see the luxury bag you’re carrying.

Focus on building real wealth. You can always see money. You can’t always see wealth.

The Power of Contentment

Focus on being content. This contentment isn’t accepting what you don’t have. It’s being ok that you don’t have it yet!

Imagine a 5 hour road trip. You may only be 2 hours in, but you’re content.
Not because you’re there.
But because you’re on the way.

Have goals, make plans to achieve them, then be content along your journey. This will go a long way in handling your finances.

Barrier 2: Feeling Overwhelmed by Financial Complexity

Many millennials feel unprepared because they were never taught practical personal finance skills. And with so much information available, it is increasingly difficult to know who to listen to. This creates confusion. The confusion breeds procrastination.

Make it Simple, Then Keep it That Way

Personal finance should not be difficult. Here’s 5 easy steps you can take if you’re starting out:

1. List all of your assets, debt, and savings/investments to figure out your net-worth.

2. List your income and expenses to estimate your monthly/annual cashflow.

3. Determine a savings/investing rate needed to build a security blanket and invest for retirement.

4. Setup automated transfers to your savings and brokerage accounts so you don’t have to think about it.

5. Review your plan annually.

This is a simple 5 step plan to get started if you’re confused on what to do. Additional planning can be done later to fine-tune your plan to your specific situation.

Take an hour or two and knock out these 5 steps to get started.

Barrier 3: Struggling with Consistency and Habits

Financial success isn’t a certain type of income. It’s the simple, small actions you execute over time. The three areas millennials struggle with building healthy financial habits are competing priorities, lack of routine and frustration with progress.

Stack Habits so you can Stack Dollars

Most fitness journeys fail due to changing too much at once. Same with money. People fail because they attempt to rearrange their whole life at a drop of a hat to get their finances in order. If you dine out everyday, you're not likely to successfully cook everyday all of a sudden.

Instead, Habit Stack.

Change 1 thing this week. Next week, add 1 more habit to the stack.
Build slowly and get used to your new lifestyle.
This will increase your chances of sticking with it.

If you need to get a handle on your finances, start with opening your bank account everyday. Know at all times how much you have. This will allow you to be more familiar with how much you’re spending.

After doing this for a week, start another habit. Add cooking more often to save money or checking out my YouTube channel to learn more about investing (shameless plug).

The focus is building a lifestyle of healthy habits. Don’t expect to snap your fingers and get everything right.

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