Financial Planning Tips for Millennials
December 16, 2021
DECEMBER 16, 2021: If you’re part of the millennial generation and you’re not sure you’re on the right financial track, there are a handful of basic tips that can help you master your money management skills as quickly as possible. Even if you’re previously browsed through some financial planning advice for millennials in the past, you may not have come across long-term tips such as planning for retirement, learning how to budget, planning out your career trajectory and more. For instance, some of the most important financial goals millennials should have include not only saving for the short-term but thinking ahead decades in advance. Fortunately, even if you haven’t yet planned out your Retirement Strategy, you can improve your financial planning skills with these essential tips.
Learn To Budget Responsibly, Save for Retirement and Set Up an Emergency Fund
Before you can move on to more advanced money management skills, it’s important to have the basics locked down. Budgeting responsibly, putting away retirement funds and having an emergency stash are all crucial steps. Remember to:
- Save about six months’ worth of expenses in a liquid and easily accessible emergency fund
- Create a household budget to track your dollars more closely and keep everyday spending in check
- Begin saving for retirement as soon as you start working, even if you can only save a small amount at first
- Avoid blowing through your savings on spur-of-the-moment purchases or frivolous splurges
Plan for Your Financial Future and Adjust Your Career Trajectory Accordingly
One tip that can be helpful to follow in your younger years is planning a career trajectory that can help you accomplish your financial goals. To set up a long-term plan, you should:
- Envision the type of lifestyle you want in the future and calculate how much that lifestyle would cost per month or per year
- Figure out how you can climb the career ladder to access higher-paying job opportunities
- Talk with a professional financial advisor to achieve a diversified investment portfolio that can help you make money off your savings
- Consider finding multiple passive streams of income to supplement your job income
Master the Basics of Filing Your Annual Tax Returns
Finally, it’s important to learn the ins and outs of filing annual tax returns. You may want to:
- Determine whether it would be best for you to e-file or to file by mailing in paper forms
- Calculate your adjusted gross income and net earnings
- Pay all applicable taxes at the local, state and federal levels and calculate your current tax bracket
- Consider whether you need to itemize your deductions or simply take the standard deduction
- Learn about the tax credits and/or exemptions you may be eligible for
As a millennial, you may not have planned out your future Retirement Strategy or given additional thought to your overall financial plans yet. However, beginning to plan for future finances and learning responsible money management now can help you establish a strong financial foundation.
About 1891 Financial Life
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Our portfolio is extensive, ranging from various life insurance policies to our MYGA to support your financial needs no matter what stage of life you’re in. For more information, contact us at (855) 804-7424.