Millennials get a bum rap for being spoiled, entitled... name any insult suggesting selfishness, and you can probably find a news report that has applied it to the generation born between the early 1980s and early early 2000s, In fact, research shows that Millennials are doing just fine--they're actually very positive and anxious to leave their mark on the world, Business Insider reports. But one area where many Millennials, and especially younger Millennials, are struggling is with money. High student loan debt and historically low pay make it tough for this generation to get their financial footing, according to Millennial Money. But there are things you can do to catch up.
Get a Checking Account
We might rely much less on checks now than we did 10 years ago, but there are some things, like rent, that you can't pay with an app or credit card. Yet five million Millennials don't have a checking account, according to a study by The Center for Generational Kinetics and Global Cash Card. Find an account with no fees if you plan to maintain a low balance. Better yet, go for a checking account with rewards, because you can earn cash back, miles or other incentives for writing checks or using your debit card. And unlike rewards credit cards, which charge interest if you don't pay off your balance each month, the checking account won't cost you a cent or encourage you to run up debt.
Prioritize Retirement Savings
If you're one of the 66 million young Millennials who have no retirement savings, it might be time to start building your nest egg. This is especially true if your employer matches contributions you make to a 401(k) account. Many employers require that you stay with the company for a certain number of years before you're fully vested--that is, before the contributed money stays in the account even if you leave your job--but once that happens, it's free money. The average contribution is 2.7 percent of employees' pay and the most common match is 50 percent, usually up to 6 percent of earnings, according to Investopedia.
Start with a Starter Home
Millennials are buying real estate, but they're waiting longer to buy, and when they do, they're buying larger homes with the intention of staying put in the long term. In the meantime, they're renting rather than building equity--or delaying independence entirely by living with their parents well into their 20s and 30s, USA Today reports. That's a lot of wealth-building opportunity lost. A report by CoreLogic notes that the average equity gain was nearly $15,000 per year by the 3rd quarter of 2017.
The other potential problem is that these "forever homes" often aren't. It's difficult to predict what the future might bring when you're in your late 20s or early 30s, so you might be best off not assuming that where you are now is where you'll always want to be.
For a generation accusing of putting off "adulting," Millennials are actually doing pretty well. Over 16 percent have even saved $100,000 or more, according to CNBC. But if you're not there are or operating without a financial plan, there's no better time to get on track and start building wealth to secure your future.
Hello, my name is Sigmond Jenner. Welcome. I am here to talk to you all about acquiring personal loans for emergency expenses. Although everyone should have an emergency fund in a savings account, there are many barriers to achieving that goal. In the meantime, you can look into acquiring a loan to cover emergency expenses that may come up. You should be prepared ahead of time, so you can act fast when unexpected financial expenses arise. I will provide information you can use to prepare yourself for this process. Please come back again anytime to learn more about acquiring loans as needed.