According to CNBC, Forbes, The Wall Street Journal, Business Insider, The Atlantic, random people on the street, and your mom, your current financial life is a disaster simply because you are a Millennial. This is only poised to get worse as you age thanks to a perfect storm of circumstances ranging from rising student loan debt, stagnant starting salaries, the demise of Social Security, fewer options for affordable housing…the list goes on as you are well aware. Your generation has been dealt a hand that is forced to focus on surviving day-to-day financial stresses instead of building a business or saving for retirement, which seems a million years away. Exhale. The good news? Financial prosperity is pretty straightforward with the right financial plan and some expert insight. The bad news? You have less time than you think.
Being free from the financial support of parents is one of the defining characteristics of adulthood. Living paycheck-to-paycheck, as many Millennials do, doesn't make this easy. Gaining financial independence should be rewarding, not draining. While spending frivolously is never advisable, cutting back on your vinyl purchases aren’t going to bulk up your fortune. Accumulating wealth takes broad, long-term thinking. Think macro, not micro.
If you are making $30,000 a year, it will be nearly impossible to amass a large sum of money at any point, and giving up Starbucks off and on isn’t the solution. If it’s a struggle to land a decent paying job, or to find a job at all, while you are struggling to pay off your student loan debt, it’s natural to focus on paying off debt first. This seems logical, but it may not be your best option. You need to have your money working for you. So, what does that look like?
Although debt is indeed a 4-letter word, it’s okay to have the right kind of debt.
Debt that works for you, not against you. Understanding whether you should buy a car outright, or obtain a low-interest auto loan and pay it off in small, regular installments is a great example. Plunk down a large lump sum and walk off the lot with no payments, or incur a low monthly payment? What about credit cards? Pay them off in full every month or pay the minimum? Have one card or several? These are just a few of the strategies VIP Financial Matters will take the time to go over with you in the finest detail, helping you make sure all of the moving parts of your financial picture are working towards your overall financial stability and security.
Here are 5 financial facts for Millennials.
Fact #1
That infamous“Before 35” report that Market Watch put out that sparked all of the memes was really intimidating!(my personal favorite was:“Before 35, you need to have a castle on a hill made of avocado toast”) No wonder it was ripped to shreds on social!
Breathe. We’ve got this.
Fact #2
A full 70% of your fellow Millennials surveyed believed that as retirees they would be able to survive on $36,000 per year. As of 2016, the average yearly expenses for those ages 65-74 were $48,885 per year, according to the Bureau of Labor Statistics. Also? Costs continue to rise, and the amount needed for retirement will too. Time for a new plan.
Fact #3
Compared to your parents and grandparents, you are beginning your adult financial life with more debt, less earning potential AND they had social security and pension funds as a safety net. Odds are you won’t. Now what?
Fact #4
As a Millennial, you are approaching investing in an entirely different manner than your parents and grandparents did. While Baby Boomers only set aside an average of 11% of their salaries for investing, Millennials who can save allocate as much as 18% according to asset managers at Black Rock Funds. Couple that with your affinity for tech and the plethora of mobile investing platforms and not only have you learned from their mistakes, but you have more options and opportunities. Where should you invest? How much? Do you diversify? What about Long Term Care? Can you afford a mortgage? What’s the best strategy?
Fact #5
You need to be on top of this NOW, so you don’t have to sweat it out down the line.
VIP Financial Matters can help you develop a smart, savvy financial plan.
Whether you are self-employed and don’t have a traditional income flow to support a consistent savings routine, you’re simply feeling“behind” on the retirement savings process, or you are feeling pretty good about all things financial and you’re ready to take the next step, a comprehensive financial plan put together with an expert will help you live your best life now, AND be ready for retirement. An action plan now will help avoid a financial crisis later. Schedule your free financial consultation with VIP Financial Matters now or click here https://www.vipfinancialmatters.com/contact