As a Millennial, retirement may seem like some mysterious thing far off in the future, but just because it is far away doesn’t mean you have to wait to start saving and planning. Did you know that more than 50% of those ages 18 to 34 have less than $1,000 in savings? Luckily, as a Millennial you have time to implement a few simple but powerful ways to ensure that you are prepared and comfortable come retirement.
MAKE SMALL CHANGES
Look for opportunities in your everyday life like skipping that $5 coffee each morning or cutting your Uber trips in half to save and invest that money in your future. Before paying rent and utilities, throw some of your earnings into your savings account. Small amounts contributed each month have the potential to grow into much larger savings by retirement.
BUDGET, BUDGET, BUDGET
There are countless free templates and apps, such as Mint, to help you easily track and monitor your spending. These tools help you visually categorize your expenses so you can determine where you can cut, by how much and set spending limits for yourself to stay within a budget. Perfecting these budgeting skills now will only help you as your financial portfolio gets more complex.
GET EVERY PENNY OF YOUR 401(K)
If your employer offers some kind of matching funds to 401(k) contributions, make sure you’re taking full advantage of this offer. Not sure what all of the corporate retirement jargon means or what the best option is for you? Talk to your Human Resources team for program specific information then contact TruStone Financial for advice on which investment option is best for your goals.
THINK BEYOND SAVINGS
A crucial part of retirement planning involves thinking about financial security for you and your loved ones should the unexpected happen. That involves having the right insurance coverage for your lifestyle; don’t skimp on insurance to save a couple of bucks today when you may end up paying more down the road.
MEET WITH FINANCIAL PROFESSIONALS
With acronyms likes IRAs and 401(k)s, it isn’t always easy to keep track of what is what. That’s why it’s important to sit down with your neighborhood credit union to understand what’s best for your unique situation. You don’t need to have a lot of money to get started, but the sooner you do start the more time your money has to grow.
As a Millennial, you have a lot on your plate but it’s important to keep savings and retirement in the forefront of your mind. By utilizing these steps, you can build a savings and retirement plan that your future self will thank you for.
Editor’s note: Segments of this article were taken from fbfs.com and usatoday.com.