ME-llennial Mistakes To Avoid
You don’t need a shiny crystal ball to forecast your exact future. But, you will benefit from a little planning so that you can better position yourself for flexibility to achieve your dreams while minimizing your risks.
The millennial generation is said to be self-absorbed, so start acting like it by taking care of yourself. Maximize your potential and minimize your regrets. Regrets? You know, like that one night in college when… ok we won’t go there.
Here are some sexy tips to help you avoid having financial regrets:
- Not saving today
- Employer benefits, 401k/IRA, savings accounts…paying yourself first will give you more flexibility throughout your life
- Saving incorrectly
- Do you know what you’re invested in? Do you know why? Risk vs. reward is a learning priority; understand your time horizon, risk tolerance, and goals
- Not having a plan
- What are your life goals and dreams? It’s not always about saving money to “retire” but maybe you want to help your future children pay for college, or pay off your car/house/student loans
- Understand your credit score and potential [future] credit needs
- Having a “budget” that you “track”
- Budgets are boring, sure. But, not having any money is more boring…promise
- Pulling from retirement savings early
- Taxes, early withdrawal penalty, drop in account value, loss of compound interest
- Not having an emergency fund
- 3-6 months of buffer can save you years of stress, plus help you sleep at night!
- Low/no insurance
- Insurance is protection for what you work hard for every day – protect yourself and your loved ones with adequate coverage