5 Financial Goals for Millennials
What are some good financial goals for millennials?
A recent survey created by Credello had millennials share their financial resolutions of 2021. The results help give an idea of where millennials are in terms of money and may help you see where you can improve your own finances. Here are 5 financial goals for millennials.
1. Create a budget and stick to it
Creating a budget can help you save money and avoid making unnecessary purchases. Take time to gather all your financial documents and assess your situation. From there, calculate your income, tally up your essential monthly costs, and see what’s necessary.
2. Get out of debt
To get out of debt, find a debt payoff method that you know you’ll be able to stick with. A couple of popular do-it-yourself repayment strategies are the debt snowball and debt avalanche methods.
3. Invest for your retirement
Investing in your retirement now can pay off big time in the future. You’ll want to make sure to start early, as waiting to start saving means you’ll be missing out on compound interest, which is when the interest earned on the money you’ve saved earning interest.
4. Create an emergency fund
Having an emergency fund on hand can be a huge asset should the unexpected occur (like a pandemic). You’ll want to try and save three to six months of expenses for a rainy day, though a year’s worth of expenses is even better.
5. Develop good credit habits
The ability to manage your credit is essential for financial success. Your credit score is calculated with data from 5 different categories: 1. payment history (35%), 2. amounts owed (30%), 3. length of credit history (15%), 4. new credit (10%), 5. credit mix (10%).
Final Thoughts
Millennials, will this be the year you reach your money goals? Now that you know what other millennials are thinking and some financial goals for millennials to strive for this year, what money goals will you tackle?
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