What is your current age? Is it between 22 to 37 years? You are a millennial for sure. Yes, friend, I am a millennial too. Do you know an interesting fact about us? We are currently the biggest generation in the world. Unfortunately, we had faced a demon called the Great Recession in the early phase of our career. That is why we have coined a term called FIRE. Let's check out how we can make our 'Financial Independence, Retire Early' movement successful.
How the millennials see the world:
Millennials look at the world differently from the previous generations. Working parents have brought them up. Their parents worked hard to earn a living. Still, they have faced difficulties with saving for retirement. That is why a millennial thinks differently from past generations about post-retirement savings and investment.
What are the financial troubles they are facing currently:
All was not good for Americans at the beginning of the 21st century. We had encountered two significant mishaps in the form of a terror attack and the great recession. The millennials were at the beginning of their careers at the time, so they had to absorb the most shock. Investopedia report says, 15% of them were then in their early twenties. The young workers were fired without any fault. It was a hands-on experience for them. They have realized why saving is the most crucial matter for them.
How much debt millennials currently have:
Economic policymakers thought a low level of spending results in limited economic growth. So, they have made several plans to boost spending. They have forgiven a significant part of student loans. New York Federal Reserve Consumer Credit Panel says millennials had student loans up to $1 Trillion in 2018.
How to get financial independence quickly:
When you are young, you may have to live paycheck to paycheck life in the initial stages of your career. Your experience will count more than your earning figure. But you're getting a chance to learn the nitty-gritty of finance like savings in that initial period.
Read the five topics carefully to know more about financial independence
1. Get rid of debt and focus on financial independence:
A millennial's focus must be on getting rid of the student debt and other loans. The financial condition is not so favorable now with the high unemployment rate and low pay package. You can tackle the problem with the debt consolidation program. If you are thinking, what are the benefits of debt consolidation? Well, you can consolidate your multiple debts at a reduced interest rate. Debt consolidation program can help you in savings too. A reduced interest rate means you are saving a definite money on the interest rate of your outstanding balance. Just pay a single monthly payment to the debt consolidation company. Keep the extra money on a savings account. This can be your first step towards savings.
2. Start thinking about 401(K) account:
You may or may not agree with my opinion. Millennials are the most unfortunate generation in the last 50 years of US history. They have agreed to accept a low pay package helplessly due to the Great Recession. They can escape from this situation only through savings for the future. They can save money in a 401(K) account from an early age to get a lump sum after retirement.
3. Opt for stock market investing:
The proverb says, one bad thing will help you to learn four good things. Millennials have experienced it better than others. Indeed they were unfortunate to start their career at the wrong time. But they are fortunate as the first internet-savvy generation. The Internet can help them to learn how to invest in the US stock market. They are the first generation stock-market investors who can invest on their own. They don't have any need for brokers. The Internet is enough for them to get tips about the stock market. They can make payments to their stocks online and earn money in the same way. It is a win-win situation for them. Earn profit from your investment as well as you don't have to pay a single penny as a brokerage.
4. Why millennial need to save more than previous generations:
WDTN.COM has quoted an expert retirement planner about how the current retirement planning is going in America. Matt Carey, the retirement planner, says that the average American had spent about $40,000 in a year after retirement in 2017. Social security was the provider of half of the spending.
So, millennials have to save about one time of their income by the age of thirty. When they retire at the age of 60 or 61, the savings must be up to ten times the income.
Don't worry. Millennials have a clear idea about savings. They are smarter than Generation X. The Schwab study says, about 81% of millennials have a clear idea about how to achieve their financial goals. Generation X is ranked second to them about doing financial planning.
Only 65% of them had a good knowledge of creating a sound financial plan.
5. What the millennial can learn from previous generations:
Millennials can learn from previous generations useful money saving techniques.
If you are in the mid-thirties, saving must be your topmost priority. You can get several saving techniques in the market. These techniques are the best way to reach financial independence. Read the five sub-points which are written above. These are the best ways to learn how to achieve financial independence.
What a night! Last night was Halloween, and I decided to do something different. Unfortunately, there was a tornado watch and warning issued for our area, so we could not go out and trick-or-treat as we usually do. Not only that, but I also did not buy any costumes to save money. I had to think of a frugal and smart way to have Halloween in the house this year. What do I do?!
When I bought my 2016 Honda CRV fresh off the lot (learn about her demise here), I didn't really understand car warranties. The salesperson was pushing it down my throat, and that should have been red flag number one! My grandfather advised me against purchasing it, so that should have been red flag number two. But, of course, I was hard-headed and bought it anyway. So, here is what I learned:
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This week has been difficult for many reasons but the one that stands out is death. My boyfriend lost his sister to cancer this week and it made me realize that life is too short. I have not been taking my health seriously and since I have a family history of several ailments, I need to get serious! Diabetes, high blood pressure, asthma, and anxiety/depression runs in my family. For years, I have wanted to lose weight BUT never really took it seriously. I was like YOLO (you only live once) let me go ahead and eat what I want. That has to stop.
FinCon 2019 was one word, AMAZING! Okay, that's the end of this article. I will see you next time. Just kidding! A FinCon Experience would not be complete without an accompanying blog post. It is like a wright of passage! There were so many things going on that I couldn't get to them all. But, I guess that brings me to my first tip:
FinCon starts tomorrow, but this post has nothing to do with money! Yesterday, I spent the day cherishing my loved ones, especially my son, because I know I am going to be away for a little bit. I only had one son yesterday, so it gave me time to provide one on one attention and affection. I am always working and hustling, and the good part is my kids see that. Also, the bad part is my kids see that. I need to slow down just a tad and find balance. My oldest has started thinking of his own business ideas. He wants to own a restaurant (for now), and I encourage that. I remember when I was his age, I too wanted to own a restaurant. I was told that being a chef was a man's occupation and that a woman wouldn't make it to the top. Yes, this is what I was told by a very close family member.
As the kids go back to school this week, I wanted to take a moment to reflect on the many lessons I learned this summer. It was both challenging and cleansing. The message that I write my story and control my surroundings has never been more apparent! Here is what happened:
I am so excited! I was blessed enough to get a full scholarship to FinCon this year. Not familiar with what FinCon is? You can read about it here: https://finconexpo.com. I have been wanting to go for years but either didn't have the money or couldn't take off. This year, I have no barriers and I am going! I was also able to secure funding for my lodging so all I have to do is pay for gas and parking. Wow!