Savings? Making it Easy for Millennials
Saving money is not an easy task for any age group. This is particularly true for Millennials or Generation Y. As the young generation who came of age as the country plunged into an economic recession, savings accounts, large purchases and saving for retirement sometime seem unattainable to this generation. However, new studies show that the generation that demands news, sports, and entertainment on demand and on the go, is taking time to think and plan ahead. Considering the following tips will help you on your way to meeting your financial goals!
Setting a budget- Not every penny has to be traced; however, a great way to start saving is to set a budget and to stick to it. The first priority should be your basic necessities like shelter, food, and utilities. Next consider all debt payments, whether from student loans or credit cards as the next priority. Following your debt payment, accounting for savings is the next budget item. It is important to think about both a retirement fund as well as an accessible savings account. Finally, it is important to budget for extracurricular activities and entertainment instead of indulging and then scrapping your budget all together.
Retirement- One of the easiest ways for today's Millennials to save money is to take advantage of any employer retirement accounts. Because some employers match the contributions that their employees make, taking part is a great way to save long term. If you are a recent college graduate in search of a 401(k), you have several decades to ride out the highs and lows of the market so you can take advantage of more high-risk investments.
Paying yourself- Transferring a set amount from checking to savings after each paycheck will help you to establish the saving habit. With online account management, making a transfer takes less than a minute and there's no need to fill out a transfer slip or write yourself a check. By setting a calendar reminder biweekly, or even once a month, you can easily and painlessly build your savings with each paycheck.
To successfully save, you should set short-term, mid-term and long-term goals. Short-term goals include having an emergency fund or paying off credit card debt. Mid-term goals might include paying other consumer debts, such as auto loans and mortgages. Long-term goals focus on having enough saved to retire comfortably, especially through saving in a 401(k) or IRA investment fund. If the thought of saving seems perplexing, consider working with a financial planner or investment advisor to develop a savings plan that fits you. With a little work, you'll be on the road to successful saving and a secure future.