Millennials may be the first generation to do worse than their parents financially. The Great Recession, sky-high college debt, the pandemic turmoil, and record-high inflation have put a dent in the dreams of many of those born between 1981 and 1996. Still, this generation is beginning to gain its financial footing as they advance in their careers.
Known for creativity and adaptability, Millennials can get their financial houses in order while they are still relatively young by rethinking their approach to money. Here are five key components they should consider now.
Given everything they have experienced, Millennials know uncertainty all too well. Three to six months’ worth of expenses in a readily accessible account will go a long way to keeping life on track in the event of an unexpected job loss, or major medical or car expense.
It’s impossible to set financial goals when money is slipping through your fingers. Tracking expenses, developing a budget, and retiring debt are essential steps to reaching future goals like home ownership.
The earlier one starts saving for retirement, the better. An automatic savings plan allows you to build a solid nest egg—slowly but deliberately. The younger you are, the more you should consider having growth investments in your retirement fund.
While health insurance is a must, don’t overlook options like supplemental insurance to cover gaps in your medical plan.
In the unlikely event of a critical accident or chronic illness, don’t you want your wishes for end-of-life care followed? That’s the purpose of a medical directive. Also consider designating a person to make medical decisions on your behalf just in case you are unable to.
Need assistance getting your finances organized? Contact an Alloy Silverstein advisor today!
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