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Thursday, March 13, 2014

Millennials Can't Afford Not To Start Saving

Perhaps you've recently finished school and have gotten your first full-time job, you could think it’s rather soon to begin agonizing over saving and investing what little money you have. That couldn’t be further from the real truth. No matter how you approach at it, the sooner that begin putting money away, the more of a financial cushion you'll have later (or for a rainy day). And, starting to save your income now will only make make things way easier down the road when you are looking for a place to live or planning to retire. Becoming familiar with good financial habits certainly brings lasting rewards later in life. These initial financial tips should help you find a bit of financial security and make an investment toward your future.

Expect the unexpected.

As you begin thinking of long-term professional goals, be certain that you have made a plan of action set that will address your immediate situation. In particular that includes paying off any private/federal student loans that you may have. With loans that have an interest rate of 5-6% or more, it’s very important that you pay off student loans as quickly as you can—especially considering federal student loans are the hardest type to pay off. There are many laws currently in effect to make it very hard to forgive federal student loans in the instance of bankruptcy. for bankruptcy, but the key to a fiscally secure future is anticipating financial obligations before other obligations make your life get even more financially stressful. The last thing you want is to have your past debt hanging above your head while you’re starting your very own family or shopping for your very first home.

In addition to paying off your debt from loans, it is important that you start putting away a fund for emergency savings. At some point in the future, you could have unexpected expenses. If you have to pay for major surgery or an unexpected vehicle repairs, you'll thank yourself for setting the funds aside earlier, and effectively saving yourself from unexpected.

Identify your future goals.

Whether or not you have your whole life mapped out, you probably you have a bit of notion of what your greatest priorities and interests are. If you plan on seeing the world before you have any serious adult responsibilities, your saving approach is really going to look quite different than those of someone who would like to to retire at an early age. Expressing your goals will help figure out how much they need to put away every week. Some People insist that millenials set aside as much as a whole third of their paychecks, while others say to save at least 10% of their money. Whichever amount you decide is best for your budget, make sure to put aside funds for every one of your important goals (from owning a home, to traveling the world, to paying off debt) every month so that none of your goals are neglected.

The benefit of good saving habits is that you won’t start getting used to a lifestyle that you later find out is very expensive. It’s much easier to start lean and build up to a different life than it is to get rid of what you used to love.

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