5 Smart Steps for Millennials

We often focus on retirement planning within our blogs. Those in their thirties might think of retirement or financial planning as something that only older people think about. But now that you’ve established a career, it’s your turn! You’re making some money; now it’s time to manage it wisely.

These five steps can get you started on a path to a bright future. Or, if you have adult children at this life stage, pass on this blog to them.

Get out of debt wisely. Every time a credit card balance rolls over to the next month, interest adds to your overall debt. Look at it this way: Over the long run, you’re paying much more for the things you purchased with that card. You’re damaging your purchasing power for years in the future. Ouch!

Get out of debt by consolidating everything into one low-interest loan, or transfer those balances to a card to a zero-interest introductory rate. Use that time to pay down balances aggressively, and in the meantime, stop charging more than you can afford to pay each month.

Stop turning down free money. You might feel that other priorities take center stage right now, and that you can’t afford to contribute the maximum allowable amount to your retirement account. But if your employer offers matching funds, at least contribute the full matching amount. That way you’re not turning down free money.

Open an IRA. If your employer does not offer a retirement account as part of your benefits package, you can still save for retirement by opening your own Individual Retirement Account. Traditional contributions also lower your income tax liability, helping you to potentially save a bit at tax time.

Purchase a home. Your rent might be the largest payment you make each month. Put that money toward building equity in your own property instead. Meet with a mortgage professional to learn about the different types of home loans available to you. You might be surprised to learn that an enormous down payment and perfect credit are not always required to purchase a home.

Meet with a professional. The best way to prepare for the future is by looking ahead, rather than looking back and wishing you’d done things differently. Meet with a retirement planning professional now, so that you don’t miss valuable opportunities to plan for your future. Give us a call and we can help you get started, no matter your stage in life.