Millennials are known to be weird with money, so millennial financial planning is naturally a bit unique. Unlike their parents or grandparents, Millennials have come of age during an era of economic recession and technological upheaval. They are often called the "slacker" generation, but this is far from the truth. Millennials are entrepreneurial, innovative, and resourceful - qualities that will serve them well in the world of personal finance. However, millennials tend to struggle when it comes to financial planning. In this article, we will discuss five things to watch out for regarding millennial wealth management.
Waiting too long to plan for retirement
One of the biggest mistakes made when it comes to millennial wealth management is waiting too long to start planning for retirement. It is never too early to start saving for retirement, and the sooner you start, the better off you will be. There are a number of ways to save for retirement, such as 401(k)s and IRAs. If your employer offers a 401(k) match, be sure to take advantage of it!
Spending too much
Whether it's travel, clothes, gadgets, or spendy dinners with friends, millennials really love to treat themselves. While it is important to enjoy your life and treat yourself, it is important to find a balance. When you are able to stick to a budget and save money, you will be in a much better position to reach your financial goals. So it's important to take a good look at your spending and reel it in if necessary.
Forgetting to plan for long term goals
Millennial wealth management trends show that millennials are great at planning for short term goals but have a hard time planning for long term goals. Plus, it's so easy to get caught up in the day-to-day expenses and lose sight of your long term financial goals. Whether you want to buy a house, save for retirement, or pay off student loans, it is important to have a plan in place, even if it feels like it's a long way off.
Not taking advantage of time
One of the biggest advantages that millennials have is time. When it comes to millennial financial planning, time is still on your side. However, as this generation quickly approaches middle age, time will begin to work against you. The sooner you start saving and investing, the better off you will be. If you wait too long to start saving or investing, you may find yourself behind when it comes time to retire.
Taking on financial planning with expert help
As millennials get older and accumulate more wealth, they will need to start thinking about more complex financial planning strategies. Estate planning, tax planning, and investment portfolio management are all important considerations that are easier to take on with a trusted and knowledgeable financial advisor.
If you are a millennial and have not started planning for your financial future, now is the time to start. No matter what your financial situation looks like, Rally makes it easier than ever to find an affordable and trustworthy financial advisor. With a little bit of planning, millennials can set themselves up for a bright financial future.