Planning Ahead: 5 Roots Millennials Should Start Planting for a Secure Future
Securing the future means planning and taking action now. There are certain things everyone needs to do, in order to build a solid foundation for financial and personal security. We often hear millennial being thrown around as if they were kids.
The truth is that millennials are adults under forty. These are the people graduated from college setting roots into adulthood.
Here are five things millennials will want to start planning to ensure their future is secure and bright.
Build an Emergency Fund
How do you cover emergency expenses? The car breaks down. The fridge conks out. You have to make an urgent trip to see a parent who is in ill health.
Many people don’t have the ready cash to cover unexpected expenses. They rely on credit cards or loans from family or friends.
Having an emergency fund is a better solution. Start with $1000 as a goal, then build it to cover 3 to 6 months of living expenses.
You never know when health may take a turn south or the economy may affect you negatively.
Even if you live paycheck to paycheck it’s important to be prepared.
Start Retirement Savings
When you are financially struggling, retirement is often the last thing on your mind.
However, the sooner you start saving for retirement, the more you will have as you get older.
If you work with a company that matches your contributions, you need to invest at least the minimum.
If you don’t work for a company that matches, or you have no access to a retirement savings plan, start saving a percentage of your income each month. Start at 1 percent and build from there.
Invest in Life Insurance
Life insurance is there to protect your partner and your children in case something happens to you.
No one likes to think of such a scenario, but it happens to people every day. See if your employer offers an affordable option or talk with an insurance agent about a term policy.
If you ever need the money you can also sell your life insurance. This way it’s an investment regardless of your health.
It’s always better to be safe than sorry and the truth is that with age comes the looming sense of responsibility.
Make a Will
Like life insurance, making out a will protects your family. It also distributes your assets in the way you desire.
You can put together a simple will yourself or invest a few hundred dollars to have it done by a lawyer.
Take Care of Your Health
Eating right and exercising regularly will help you stay healthier long term. And that will pay off in many ways. You will have lower health care costs and be in better health as you age. The best thing? It doesn’t cost much to do.
By planning these five things and starting to nurture them, your future will be more secure.
This will give you the freedom to live life with minimal worry. It’s time well spent for you and your family.
Category: Financial Planning
