Wednesday, 4 November 2015

Smart Ways In Which Millennials Can Save Money For Their Retirement And Breathe Free

Posted at  07:35  |  in  Frugal


Money saving tips for retirement

Nowadays, it’s pretty tough to be a working millennial or a Generation X-er. You must have got credit card debt or student debt to pay off within a fixed time period. Apart from that, you have to most likely set aside a portion of your income for your emergency fund, for may be an engagement ring or for a down payment for a house or a car. To top it all, you have perhaps been advised by your financial advisor and your parents about saving for your retirement too, even if it’s still 40 years later. Amidst such competition, have you ever thought how you can manage to save money for your retirement even after setting aside money for the aforementioned things? Here is some smart advice given by some Wall Street finance experts.

  • Start off with a balance sheet: An expert financial planner, Derek Lawson says that step one should be to take an inventory of everything that you own, for example, checking accounts, investment accounts, savings accounts, IRAs, CDs and even 401(k)s. All these include your assets. Then do the same thing with what you owe like your Parent PLUS loans, student loans or credit card debt or even your car loans. These constitute your liabilities. This cataloguing of what you owe and what you own is your balance sheet. This way you get to know your present net worth and an idea of where you stand financially.
  • Create a smart spending plan: The very next step is to create a budget. Although it is a fact that most Americans have a love-hate relationship with a budget but if you wish to stay afloat in this tough economic environment, you have to follow a budget and spend according to a fixed plan. Set down your priorities and have a clear idea of what is important and what can be postponed.
  • Trigger off your unsecured debt: Unsecured debt carries higher interest rates than the secured ones. Hence, the sooner they are paid off, the sooner you can get back on track. If you owe a huge amount on your unsecured loans like credit cards or payday loans, pay them back as soon as you can. Make sure you get help from a professional company who can help you with dealing with your debts in the best possible way.
  • Save enough in your retirement fund: Your employer must be offering you a 401(k) account? If yes, it’s your duty to save enough money, so much so that your employer is forced to offer you a company match. This is entirely free money that you get from your employer but even if they don’t offer you, you shouldn’t stop yourself from contributing money towards your retirement fund.
Hence, if you’re a working millennial and you’re caught between a numbers of places to save, you may follow the above mentioned tips to simultaneously save money for your retirement account so as to spend a debt-free retirement. Know more about money saving tips.

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Jimmy Simond is founder of wallstreetsfinancenews.com he share his immense knowledge of finance in this blog. You can follow him on Google+.

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