Generation Y is aptly named. Just look at the shape of the alphabetic character ‘Y.’ It’s a fork in the road, and we all know choosing which fork to take portends both opportunity and risk.
Many young professionals are now learning the pain that comes from having chosen the wrong path, as they face the consequences of servicing a heavy student-loan debt. As a generation, they still have opportunities to build a financially successfully life, but a new tack should be the motto of the day for the nation’s young professionals.
Here are some relatively painless ways to help whittle that debt away and stash some cash that can lead to a brighter future:
- You didn’t do the math. We know. You have better things to do than spending your time clipping coupons. But take a look at this amazing statistic. The Wall Street Journal calculated the hourly return for dedicated coupon clippers. It was a whopping $86.40 per-hour! Imagine the possibilities when you stash away that sum every week.
- You have an anorexic savings account. If you have a philosophy of spend today, save tomorrow, you may be very unhappy with your choices once you hit your senior years. Remember who your fund manager is for your major retirement account? For many Americans, it’s Social Security.
- Spending too much. Ah, it’s so easy to spend, and so hard to save! Kraig Mathias, a blogger for Young Cheap Living, suggests a regular fiscal checkup. Is your spending at a feverish level? Is your bank account in a deep chill? Do you have fiscal lesions eating holes in your wallet? The cure to these ailments is to cut back on spending.
- Too much or too little insurance. Approach insurance coverage with logic, not emotion.
- Underestimating retirement costs. Fast-forward 20 years, and there will likely be a huge cohort of Baby Boomers feeling deep regret that they didn’t save more. The cost of living is not going to become magically less in 2033. For Millennials, if you start building your nest egg now, you increase your chances of enjoying a comfortable retirement.
It’s never too late to embrace fiscal responsibility.
This educational third-party article is being provided as a courtesy by Jeran Van Alfen, CFP, President of Empire Wealth Strategies LLC. For additional information or topic(s) discussed, please contact Jeran Van Alfen at 385-212-4247.
Financial Adviser offering investment advisory services through Eagle Strategies LLC. A Registered Investment Adviser.
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