As a young millennial, talking about retirement may seem pointless. You have plenty of time to work out your life and save up. However, many people are facing struggles that could set their retirement funding back if they don’t start taking care of it now. With some thoughtful planning, you can get ahead of your finances.
Retirement Savings
Saving up for retirement is a long process. You shouldn’t just expect to pay for your future all at once. Unfortunately, millennials and Gen Z-ers are finding it hard to save up for such a long-term financial investment when they have other economical burdens.
Be wary of taking on debt—particularly credit card debt. While occasionally this is necessary to survive, shortsighted thinking can set you back drastically. Many financial advisors will recommend that you dedicate roughly 4 percent of your income to a retirement fund. If you make this decision early, you will certainly have enough for your future.
Homeownership
One problem facing the modern generations is the insane housing market. Homeownership isn’t as affordable as it used to be. Since many old people can sell their homes for a much higher price, this is having its consequences on younger generations. Not only is mortgage expensive, but buying a home comes with a lot of paperwork and permits that also cost the buyer significantly more.
About 69 percent of Millennials who rent say they’ll never buy because of affordability issues. While some of these challenges certainly sound insurmountable, being cautious with the debt decisions you make (and budgeting) can remove some of the strain on your future wallet.
Investments
One way millennials can better improve their retirement lives is by diversifying investments. Not only should you be saving money in a bank, but putting the money to use can give you a better return. This is how you can grow your savings exponentially.
Buying a stock that is guaranteed to give you a return is better than investing in a high-risk, high reward scenario. You can blow your money if you aren’t careful. You should also look to buy precious metals, land, and other commodities that are likely to increase in value as time goes on.
Retirement may be in the distant future for you, but it is important to be thinking ahead. Making smart financial decisions right now can quell many of the problems that retirees have in the future. Talk with an advisor, and analyze your current decisions. You’ll be better for it.
Read this next: How to Get Insurance Companies to Pay for Long-Term Care
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