Some of us are truly enjoying our twenties and words like budget or taxes only come up sporadically. However there’s another word that we as millennials need to begin frequently using: retirement. For those of us whom are budding entrepreneurs or creatives, the risk you take daily to stay afloat in business are more of a reason to be looking for future endeavors in making your money work for you.
Fact: Forbes reported last year that only 3% of people put away savings before spending while the majority spend then try to save what is leftover. When the words are written out, it makes perfect sense as to why such a small increment of individuals are wealthy. With our era being heavily consumer based, that puts 97% spending from paycheck to paycheck for the elite 3%. Did you know that if you could put away 25% of your earnings monthly that it could be the difference between retiring at the national average of 67 versus 59? That’s almost a decade of precious time that’s worth more than money.
When sitting with financial advisors of Principal Financial Group, they explained how to keep your ducks in a row by grouping the flow of money into three circles: bank, investments, and insurance. With keeping your bank account and investments on the straight and narrow starting with your savings, you can literally factor out risk or even benefit earlier than expected. Now moving on to more words like stocks, trust, and 401K – we as a generation need to use these too! Let’s say you opt to place a quarter of your monthly income away for good measure, you could place investment in such things as your first home or even solidify your financial portfolio for potential investors to buy in on your brand as you now have collateral.
Balancing a checkbook no longer cuts the cake and our spending power along with our influence or following puts us into a new league of financial freedom. Start small with savings and hold yourself accountable to not spend spend spend. While that’s racking up, you can also begin to plot out your goals and research what you already have set in place to protect your future investments. The next step is to meet with an advisor to give yourself more insight on how to reach those goals. Once you expand your knowledge, you can expand your vocabulary or even the amount of zeroes in your bank account as a twenty something.
It only takes 21 days to start a new habit and saving for your retirement is worth the sacrifice. Don’t you think?
MADE by Xuxa Day