As the baby boomers head into retirement and the Millennials begin to take over the workforce, chances are they have a bit more to think about regarding their financial future than did their predecessors. With a dire outlook on the viability of future social security benefits and an increasingly debt dependent society, it is no wonder that forward thinking young men and women are concerned. As a group entering the job market during a recession, many carrying the weight of massive student loan debt, looking towards retirement can be a bleak picture, but it does not have to be. By making wise decisions and implementing careful planning, Millennials can be on their way to a stable financial picture when their turns come for retirement.
Know Where You Are and Plan Where You are Going
Perhaps the most common sense tactic that Millennials can employ to help prepare them for retirement is also one of the most commonly ignored. In our rapidly moving culture with countless options to take up our time, merely completing a balance sheet, developing a budget, and thinking about a spending plan is easily avoided. It is crucial that as this group begins to experience significant income for the first time in their lives, they build a solid foundation that will carry them through. Write down your financial picture including past debt, current expenses, assets, and any other liabilities to discover net worth. Then use that information to create a detailed spending plan. Also, make sure to take the time to update them at least once a year.
Move On From The Past
Whether you piled up a ton of student loan debt to invest in your future or followed the advice of a screaming buy now, pay later culture, it is likely you have some debt to contend with. The best action you can take is to consider your priorities, find creative ways to reduce expenses, and use as much of your income as possible to pay off those past debts. Remember, they will continue to chase at your heels until you do. Also, when you pay off a particular debt, don’t change your lifestyle and view it as extra money. Continue to follow your spending plan and use those extra funds to pay even more on a different debt. This will snowball and before you know it you will be on that solid financial ground, and those funds that were going to pay the debt can go into a retirement plan.
Don’t Be a Lone Ranger
Millennials are a generation that are confident and boldly face the future with hope and strength, but sometimes that can also harm them. With so much information at their fingertips, many Millennials may believe that all their financial issues can be answered with a profound ‘tweet’ or an excellent YouTube video. One thing that hasn’t changed is that finding experienced and skilled financial support from a professional is critical. Together, the Millennials will change the world, but they will do it by sticking to what they know best, and accepting the help of those who handle financial planning best.
Landwehr Financial Solutions Can Help
The professionals at Landwehr Financial Solutions are dedicated to providing sound financial expertise to members of all generations. Offering a wide range of services with a holistic approach, Landwehr Financial ensures that your needs are understood and well cared for. Contact us today to learn more about our services, and experience first-hand the level of care we give to all of our clients in the St. Cloud MN area.