Ranging in age, from mid-20s to early 40s, millennials are now saving to build businesses, buy homes, and start families. Nevertheless, these individuals face major financial obstacles, such as increasing housing prices and rising student loan debt. Moreover, a lot of millennials have not reached this peak earning year, which makes it a huge challenge to overcome these obstacles.
Fortunately, there are ways to become financially successful, and that is by setting and achieving monetary Dreams. Remember, if you start saving early, you will have plenty of time to build assets that you will need later in life. But what should you do with your savings, and is that the only Dreamyou need to have?
Continue reading to discover the top financial Dreamsevery millennial needs to have.
Financial emergencies are an inevitable part of life. This is why you need a good amount of money in your savings which should ideally be enough to cover three to six months of your expenses. If you are nowhere close to this figure, make creating an emergency fund your top financial Dream. Reduce your monthly spending to save more or get a second job to increase your income. In fact, you can even do both!
An emergency fund won’t just give you peace of mind; it will help you stay away from debt in case an unplanned expense pops up.
All debt isn’t the same. Paying off an auto loan or a mortgage over time can help you build your credit score. The same applies to credit card balances, with one major limitation – a high amount of credit card debt can lower your credit score. This can make it difficult for you to get loans when you really need them. As a matter of fact, credit card debt is simply unhealthy as it can cost you a lot in interest. Thus, you should make it your Dream to pay it off as soon as you can.
After you have created an emergency fund, you can use the additional savings to pay off your credit card balance. It’s a good idea to pay off the balance in order of the highest to the lowest interest rate. You can also try to transfer all the debt onto a single credit card that offers a lower interest rate.
Investing in your youth, especially in your 20s and 30s, can significantly increase your wealth by the time you hit your 60s. Thanks to compound income, you can gradually turn a number of small contributions to a brokerage account or a retirement savings plan into a sizable amount of money over time.
With iDreamers, you can track your financial Dreams using a single dashboard to track, monitor, and plan the best version of your life. So bid farewell to spreadsheets and middlemen and say help to the new financial you!