First, take some time to prioritize your financial goals. “Millennials will need to have a clear idea of what is most important to them in the long-term. Kids? House? Life experiences?”
How to Boost Your Savings
For millennials, the good news is that it’s not too late to jump-start retirement savings. Juggling saving for retirement with covering rising day-to-day housing, health care and living expenses and working to wipe out existing debt can feel overwhelming, but it’s possible.
First, take some time to prioritize your financial goals. “Millennials will need to have a clear idea of what is most important to them in the long-term. Kids? House? Life experiences?” says Bart Brewer, a certified financial planner with California-based Global Financial Advisory Services. Trade-offs may need to happen, he adds.
It can also help to create a written monthly budget and carefully manage your credit. Young people need to be very careful about dramatically raising their standard of living, Brewer says. “It’s much harder to ratchet down after you’ve ratcheted up.”
And while they’re not perfect, it’s worth enrolling in your employer’s retirement plan if you’re eligible. Once you have your 401(k) account set up and your contributions flowing in, it’s important that you select how to invest your funds — otherwise your retirement money will essentially act like a savings account.
“Millennials will need to have a clear idea of what is most important to them in the long-term.”Bart Brewer, CERTIFIED FINANCIAL PLANNER™
Also, make sure to contribute enough to take advantage of any match your company may offer. Some companies offer to match the amount of money you put your 401(k), up to a certain point: If you put 5% of your salary into your 401(k), your employer may also contribute 5%, depending on the type of program. The median matching level is 4% among Vanguard 401(k) plans.