Millennials Manage Money
Millennials, the generation’s newest adults, face an increasing challenge regarding retirement and savings. According to a recent study, millennials will need to stockpile at least $2.5 million dollars in their lifetime so that they may retire peacefully. Every individual of the earth dreams of becoming a millionaire, but only a select few actually achieve the goal. However, there are ways for young adults to become better money handlers and save a massive proportion of their collective earnings throughout their lifetime. They can use money gifted from family members to initiate savings, earn money in the present with hourly wages from jobs and chores, and save income for the future for retirement pleasure and relaxation.
Young adults can become better savers by starting as soon as possible. Most teenagers receive an allowance from their parents, which a fraction of can be stored away or invested for a greater yield after reaching adulthood. Many families invest in trust accounts or child bank accounts to augment funds for their offspring as they get older. Another way to refer to the past contains monitoring spending and inhibiting the use of credit cards early on. Parents and previous generations can easily vouch for all concerns and regrets in these monetary expenditures. Most adults do not save money until the age of 22. The claim is justified in an observation of the average working age of young adults. They finish schooling and attempt to find a career available to them. A significant change can be saving ten percent of all assets obtained while growing up. Correct guidance and control over bank accounts, cash, and debt are imperative for young adults to grasp early on before faltering and making any major mistakes.
Millennials can prepare for their futures starting now. It requires activity and possibly minimal effort. Those who choose to mix jobs with schooling can get a head-start on their financial savings. Even chores and tasks around the neighborhood can be beneficial in producing a type of income. This becomes the ideal time to plan short-term, mid-term, and long-term goals for savings and growth. If a person saves ten dollars a day for 30 years, they will generate roughly half a million over the given time period. Young adults can restrain themselves from giving into the newest and biggest fads and social purchases to save money. Many teenagers suffer from the temptation of shopping and owning the best products around; however, they can easily diminish all of their hard work and lose savings rapidly. The present controls the values young adults will carry with them into old age and retirement, hopefully with enough to stop working by age 65.
The future holds opportunity for everyone. Young adults now face regular purchases and emergency payments that can occur at random intervals of life. These can causes drastic shifts in savings and income percentages. A common idea in the adult realm, passed from generation to generation and reaffirmed by financial advisors, is to create a separate account or window of money to hold for such emergencies or unexpected expenditures. “To master money, one must manage money”. Only a small percentage of Americans utilize the help of financial advisors. These professionals revolutionize thinking regarding money and budgeting, helping those who comply to save more money and be prepared for all of life’s disasters. A great investment for adults continues to grow in the field of life insurance, this guarantees financial protection and sums to relatives if a loved one passes away. This contingency plan can pay off mortgages, student loans, or even credit card debt. The future and present require equal monitoring of savings, compared to the past, because the freedom of shopping and impulse buying overwhelms people who have easy access to fast cash and numerous, blind purchases.
As an aspiring student, I plan on setting aside minimal percentages of my income over the next five years, while attending college. While living off of an extremely strict budget the next four years, I plan on devoting myself completely to my studies so that I can graduate with a degree in Marketing to pursue a sufficient career. Hopefully I will find a substantial job, which also provides health benefits and a 401k plan, which can support me in my time of debt. Over the course of five years I plan on avoiding all credit cards and maintaining payment plans for my student loans, so that I can pay my debts as soon as possible. The idea of accumulating outstanding debts frightens me and instills a positive and cautious mindset going into the adult world. Implementing the DIME method, I will be aware of my expenditures for debt, mortgage, and education, but attempting to stabilize the deficits with an income so I remain “in the black”. I will be wary when costs exceed my budget, making me more responsible with my money and teaching me to save accordingly. Students can operate with part-time jobs, so I hope to save aside at least five percent of my annual income for personal savings or emergency use. With the degree I will passionately obtain, I can use it to get employed in a career that can secure the future of my retirement and provide a steady and stable income over a long period of time.