Millennials tend to get a bad rap when it comes to saving and dealing with money.
However, did you know that millennials are actually starting to become better savers than their older counterparts? Well, it’s true.
In an earlier blog called “How Millennials Are Becoming Better Savers,” we dove into the issue a little more in-depth, but the gist of it explored a study which indicated millennials are saving as much as 19 percent of their income per year, compared to an average of about 14 percent for Generation X-ers and Baby Boomers.
As it turns out, millennials actually like saving a whole lot of that green stuff, and no we aren’t talking about avocados.
So, for those millennials and young professionals out there: How can you ensure that you are taking the right steps with those savings in order to secure your financial future? Well, there are a few things you need to know.
In this blog, we’re going to be taking a look at a few financial tips that every young professional should consider, whether they consider themselves a part of the millennial generation or not.
Saving for retirement is better when you start taking the right steps early on in your professional career, so consider the following as a guideline to help you generate wealth and experience peace of mind with high return investments, debt reduction, and a whole lot more.
Let’s take a look.
Tip 1: Understand Investments
The first thing that young professionals should do is enroll themselves in some sort of crash course on investing. It doesn’t have to mean going back to school, necessarily, as there is plenty of information out there on the internet which can help beginners and even savvy investment veterans better understand the many options out there.
From understanding high return investments to learning the ins and outs of interest rates, to exploring alternative investments like real estate, it’s important that you set yourself up for success by first doing extensive research before you dive in.
Tip 2: Set Goals
Once you have a general idea about the types of high return investments you want to make, you should set realistic expectations and goals for your financial future. How much money are you willing to set aside each week, each month, or each year? In which assets are you going to put that money? How much do you think you’ll need for retirement? It’s a good rule of thumb to set aside a certain percentage of your income each year, with that amount increasing with every age milestone you hit (x-amount in your 20’s, x-amount in your 30’s, etc.).
Tip 3: Set Up Retirement Accounts
In addition to making investments, if that’s what you choose to do, it’s imperative that you have one or more retirement accounts set up to generate wealth without major risk. You should set up an employer-sponsored 401K plan and make monthly contributions, especially if your employer matches a certain percentage, and even consider contributing to another form of retirement account such as an IRA. Later down the line, you might even be able to use that retirement account to make other types of high return investment which will generate income through retirement, such as the Fixed Income Fund.
Tip 4: Have An Emergency Fund
In addition to saving for retirement, you should also have a certain amount of money set aside in case of emergency. That’s because life doesn’t always go as planned, and it seems like things tend to come up at the wrong time, every time. With an emergency fund, you have a built-in safety net that you can use in case you have an unforeseen medical expense, accident, or something else entirely.
Tip 5: Pay Off Debt
That goes for not only your student loans, but your credit cards as well. If you have the opportunity to make extra payments once or twice per month, you’ll find that paying off your debt sooner will help big time in the long run. The less debt you have, the more money you can save and use when needed. There’s no way to experience peace of mind or financial bliss if you still have debt to your name, so always keep that in mind when you pull out the credit card for a swipe.
Tip 6: Seek Out High Return Investments
During your education and research process, you have likely discovered that the best type of investments are the ones which generate high returns with little risk attached. Typically, young professionals and those looking ahead to retirement have opted for things like bonds and fixed annuities for this, but did you know that there is actually a better way to invest?
It’s called the Fixed Income Fund, and it’s one of the simplest, safest, and smartest investment options out there for young professionals looking to accumulate wealth through a stable, consistent stream of income.
Learn more about our high return investment option, the advantageous fixed interest rates we offer, and how our strategy can help you achieve the financial bliss you desire in your 30’s, 40’s, and beyond. Contact Tactical Wealth today for more information.