Millennials are well into their careers, with many in their 30s and some even now in their 40s. They should be settled into their lifestyles, their finances, and yes, their savings – and yet most aren’t. Around 2/3rds of all millennials today don’t have any sort of retirement savings at all beyond what they put into their work’s pension scheme.
This will not be enough.
Now, many do realize this, but rather than thinking that there’s something that they can do about it, they instead have resigned themselves to working well beyond retirement age. That age, coincidentally, also keeps getting pushed back.
The good news is that there is hope, even if you don’t have any retirement savings specifically right this moment. All you need to get started is this guide and to find the right advisors for your circumstances:
Create a Better Budget
The best way to start getting on top of your finances is with a better budget. To do this, first work out all your fixed costs and how much you have left over for essentials like food, and then finally for fun.
If your budget doesn’t allow for a lot of savings, then start to cut back. This could mean a drastic change, like moving somewhere further out or smaller to pay less rent, or it could be as simple as being more mindful about your grocery bill by meal planning.
Set Short-Term, Mid-Term, and Long-Term Financial Goals
One of the steps that you should cover with your wealth management advisor is long-term financial goals. What you can start doing on your own, however, is set short-term goals. A good (and easy) way to do this is to create a working monthly budget and then save how much you want to save every month right away. You get your paycheck, and then you put it into a savings account that you can’t touch so it can accrue interest.
Pay Off Your Debt Strategically
Some debts are meant to take a lifetime. Others need to be paid off ASAP. In both instances, the best strategy is to try to pay off the principal as fast as you can. You can do this quickly by making principle-only payments. Not every loan option will let you do this, and if you can, they might make it difficult, so be ready to call up to make the request.
Start with Professional Wealth Management
Wealth management is a series of strategies and tools designed to help you increase your wealth, better plan financially for your future, and accomplish other goals like eliminating debt or improving your tax returns. Getting professional wealth management advice now is the perfect time, as it gives you an ample number of years while you are still working to improve your financial standing, savings, and more. It is not too late to start putting together a strong and smart retirement plan, but the only way you can get specific step-by-step instructions and recommendations that are relevant to your situation is to contact a certified financial expert.
Rely on Insurance
If you have assets like a home, a car (and yes, even your life) it’s wise to insure them. Starting early can mean very low insurance prices for things like life insurance, and shopping around can help you get the best rate for your auto and home insurance.
