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Financial Planning for Millenials

June 06, 2024

Financial Planning Tips for Millennials

The financial landscape is a daunting place for millennials. Between student loans, a seemingly unaffordable housing market, and the stresses from FOMO on social media, traditional financial planning advice might not seem to fit. But fear not! Here are some actionable tips to take control of your finances and build a secure future:

1. Chart Your Course

Having clear goals will be the compass that guides your financial decisions. Break down your goals into short-term (building an emergency fund) Intermediate (major purchases within 2 years) and long-term (retirement savings) to create a roadmap.

2. Track Your Spending

This can be a daunting task. Do your best to track your income and expenses for a normal month to understand where your money goes. There are budgeting apps and spreadsheets, or you can try the classic pen and paper method. Once you see your spending habits, you can hopefully get a grasp for your monthly surplus and make decisions on where that should be allocated based on your goals from step 1. 

3. Tame the Beast: Manage Debt Strategically

Debt can feel like a dark cloud, but there are ways to conquer it. Pay attention to interest rates and forgiveness options to get a better handle on which debt to prioritize. Your credit score standing can help with an idea of this as well. 

4. Invest in Your Future: Start Early, Invest Regularly

Time is your greatest financial asset. Even small amounts invested early can grow significantly thanks to compound interest. Look into employer-sponsored retirement plans like 401(k)s, which often come with matching contributions (free money!). Explore low-cost index funds for a diversified and hassle-free investment strategy.

Remember: Financial planning is a marathon, not a sprint. Be patient, be consistent, and celebrate your milestones. There will be setbacks, but with these tips and a little discipline, you'll be well on your way to financial freedom.

Tributary Wealth Management would be happy to help you in all areas above and begin to grow your financial success!