April 13, 2018 – By Marketsfinance
When it comes to getting ahead and building good money habits, learning proper financial management is the key to success. The secret to unlocking a life of abundance is not waiting on hands and knees for finance tips from billionaires, but building good habits centered around frugal living, tracking your net worth, and always seeking to expand your financial education no matter how successful you become. If you are looking to set aside wealth that will last you and your family a lifetime, then the best place to start is listening to the advice of the men and women who have been there themselves.
Katie Ross, American Consumer Credit Counseling
- Build an emergency fund: Millennials should make sure they have an emergency fund that can cover at least three to six months’ worth of income should an emergency occur. It’s recommended that young people save at least 15 to 20 percent of their gross income so that they can live comfortably during retirement.
- Pay down debt: Come up with a plan of attack to eliminate debt. You can either pay your debt off by smallest balance to largest balance or by largest interest rate to smallest interest rate. You need to start saving now, even if that means putting only $5 per month into a savings account. Every penny counts, and this holds true for spending, too.
- 401(k): Take advantage of 401(k) plans. It’s important that Millennials contribute at least six percent of their salary to a 401(k) plan. Many employers will match up to 50 percent of the annual contribution. This option is tax-deferred.
- Invest: Consider a balanced approach with high and low risk investments. High risk investments can generate high returns, whereas low risk investments have a smaller chance of losing money. Use technology, such as investing apps, to help you.
