Millennials are now at the age where they’re buying cars and homes as well as starting families. With all of these financial responsibilities, some other money needs can slip through the cracks. Nothing like having a new year to help you focus on finances.
Here are three major money matters Millennials should tackle in 2019:
- Retirement Planning and Saving
Sure, retirement is several decades away, but it’s seriously never too early to start saving for it. If you’re not already contributing to a 401k at work or an individual retirement account (IRA), now’s the time to get serious about opening up one.
Check with your company to see if they offer a 401k and commit to contributing at least 5% of your income to it. If a 401k isn’t available, an IRA is the next best option. Again, 5% of your income is a great starting point.
If you’re already saving for retirement, think about upping your contribution by 5% or more this year. - Refinance Student Loans
Americans owe more than $1.5 trillion in student loans. If you’re part of this statistic, chances are you’re diligently making payments without thinking about the bigger picture – like the interest rate. The average rate undergrads are paying is 4.8% while graduate students pay around 6.3%.
Chances are, there are lower loan rates out there. You could save thousands of dollars by simply refinancing your student loan. There are federal loan options as well as loan from your credit union. Keep in mind, credit unions are known to have some of the lowest rates around! A personal loanor home equity loan could be just what you need. - Make Savings Automatic
It’s hard to spend money if you don’t have easy access to it. For this reason alone, we recommend you automate your savings if possible. Most companies offer direct deposit and usually give you the option of choosing more than one account to disperse your paycheck into. Pick an IRA,savings or money market account and start putting at least 5% of every check into it. Then, commit to increase that amount each year by a percent or two. Before you know it, you’ll have a nice little nest egg piled up!
As we mention in the headline, these resolutions are useful whether you’re a Millennial or any other generation before that. The goal is to make thoughtful financial decisions, no matter who you are or what time of year it is. You can save all year long!
