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Budgeting for Millennials: How to Manage Your Money Effectively



By Bill Taber


Millennials face financial challenges unique to their generation. Student loan debts, rising cost of living, the pandemic, perilous job security, and a habit of frequently dining out are taking a toll on personal finances like never before. 


The good news is that by routinely practicing smart money management habits, Millennials can rise above their unique challenges. To get started, we put together some foolproof ways to start on the road to financial success.


Identify Flexible Spending Categories

Basically, your spending habits can be boiled down to essentials and non-essentials. Essentials include housing, food, and transportation. Your non-essentials? Things like eating out, entertainment, gym memberships, online shopping, and vacations.


Once you identify which of your expenses are essential and which are flexible (non-essential), you’ll be able to make smarter financial decisions. A good benchmark is the 50/30/20 budgeting rule, where you spend 50% of your income on needs (essentials), 30% on wants (non-essentials), and 20% on savings and debt repayment.


Develop Your Financial Literacy

Strive to continuously educate yourself about personal finance topics. There are so many convenient ways to stay informed about how to manage your money successfully. Take a look at these popular options: 


  • Subscribe to financial newsletters.

  • Listen to financial podcasts. (Our own Creating Wealth podcast is an in-depth conversation between myself and my Millennial daughter about personal finance, investing, and financial planning.)

  • Read personal finance books.

  • Watch YouTube tutorials.

  • Join social media groups.


Set Financial Goals

Your financial goals should be the driving force behind all of the money management moves you make, including spending, saving, budgeting, tax planning, investing, and, ultimately, creating wealth.


Maybe you want to buy a home, travel the world, or pay off your student loan. Whatever you decide for your financial goal, write it down so you can visualize what you’re working for. Having a visual image of your goal can help you stay motivated and on track, especially during tough times.


Utilize Technology

Thanks to the internet, using digital technology to manage your money is extremely easy. Not only can you execute financial transactions from the comfort of your couch, but you can also use technology to automate your banking. For example, you could set up an automatic transfer to your savings or investment account. 


Beyond automation, there are more ways to utilize technology for managing your money. With a few taps or clicks, you can use a budgeting app to track your spending, review your spending trends, and pinpoint habits that need to be adjusted.


Plan for Taxes

Another “must” for effectively managing your money is consistently integrating tax considerations into your financial decisions. Things like income tax, property tax, and capital gains tax should all be integral to your money management mindset. Regularly set aside money for these costs and keep meticulous records.


Being hands-on and adjusting your financial strategies regularly is crucial for staying on top of your finances and mitigating your tax burden.


Work With a Professional

While the money management methods outlined above can get you started, perhaps your smartest move for comprehensively managing your money is to work with a professional fiduciary financial advisor.


A professional fiduciary has deep experience, skills, and knowledge about financial markets, investment strategies, and tax laws. They can help you manage (and grow) your entire financial life, including defining short-term and long-term goals, developing a sustainable budget, and creating a comprehensive road map for navigating financial decisions. The time is ripe for taking control of your wealth and partnering with a professional.


Get Started Today!

TABER Asset Management is here to help you manage your money beyond the steps you can take on your own. We’re an independent fiduciary wealth management firm based in Des Moines, Iowa. Our approach is to help you create wealth, grow your income, and preserve your capital so you can officially consider yourself a financially successful Millennial. 


To see how we can help you manage your money more effectively, reach out to us by scheduling a 15-minute intro phone call online or contacting us at 515-557-1860 or invest@taberasset.com.


About Bill

Bill Taber is President and Founder of TABER Asset Management, an independent, fiduciary wealth management firm that strives to do one thing well: manage their clients’ money by creating wealth, building wealth, growing income, and preserving capital so they can experience financial freedom. With more than four decades of experience, Bill is dedicated to building relationships with his clients and their families and walking alongside them as they navigate financial decisions. His favorite days are the ones when he gets to witness the joy and relief on his clients’ faces when they realize they can pursue their dreams and live their ideal lifestyles. Bill is known for going the extra mile, getting things done with integrity, and working with a stewardship mentality. 


Bill graduated from the University of Iowa with a bachelor’s degree in business administration and fell in love with the profession when he got to help one of his first clients—his father—turn his lifetime of hard work into a dream retirement. He got his start in the industry as a corporate services representative for Bankers Trust Company and spent decades working as Assistant Vice President of E.F. Hutton & Co. and First Vice President of Principal Financial Securities. He is also a graduate of the E-Myth Worldwide Mastery Business Development Program and is Series 65 registered. 


In his spare time, Bill enjoys giving back to his community and spending time with his family. His hobbies include traveling, gardening, reading, and practicing yoga, Pilates, and meditation. He also loves the simple joys of listening to music, going for walks or bike rides, and being in nature. To learn more about Bill, connect with him on LinkedIn.

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