The ability of Millennials to save money for a future emergency or retirement has received a bad rap for far too long.
But according to a recent “Relationship With Money” survey by financial services company Edward Jones, Millennials are not only more likely than Gen-Xers to identify as “savers” (48 percent vs. 46 percent), but they are also more adept at setting aside emergency savings (75 percent vs. 66 percent).
That’s accurate. the same generation of Millennials whose catchphrase would be “Why purchase a car when you can Uber?”
This dispels the idea that Millennials are less concerned with money than previous generations, according to Nela Richardson, an investment analyst at Edward Jones.
Furthermore, the survey is not an anomaly. It is backed up by more study.
While Millennials have high levels of debt, the Federal Reserve Survey on Consumer Finances reported that over 42% of them have retirement funds, the highest percentage for people under 35 since 2001.
Top Three Steps To Start Saving More Money
Determine the feelings you have about money
Money frequently elicits emotional reactions in people. It can be exhilarating to receive a sizable bonus at work, but debating what to do with it might leave you feeling paralysed as your logical side (invest at least the majority of it) battles with your emotional side (splurge it all!). Knowing that allowing your emotions guide your purchasing, saving, and investing decisions can help you avoid making bad choices.
Create a Financial Plan
Making a down payment on a new home, funding your children’s college education, or enjoying a secure retirement are some examples of major goals that should be identified and followed through on in order to maintain composure.
Get a “Partner for Accountability”
someone you feel comfortable sharing your financial information with. It might be a relative. Or a qualified financial professional who has the knowledge, experience, and abilities to guide you in making the decisions that are best for your circumstances, like a local Edward Jones advisor.
So the Moral of all this is
In order to balance these short-term objectives with our long-term financial future, such as investing for retirement, trade-offs must be made, regardless of whether you are struggling with student debt, saving for a home, or attempting to build an emergency fund.