Millennials, how do you spend your money? What do you prioritize? What are your savings goals? You are the future of our credit union and nation, and we want to help you succeed financially. Here are some tips to help you get that done with P1FCU by your side.
Start a Savings Account
One of the most crucial parts of saving for your future is doing something that seems common sense but open a savings account and use it. It can be challenging to save a significant amount if you leave all your savings in your checking/debit account. If you see a large balance in your account, you tend to spend more frivolously than if you left a smaller balance in your checking/debit and transferred a significant portion to your savings. A trick many good savers have is automatically having a percentage of their income transferred directly into a savings account and forgetting that they earned it.
Use Your Raises Effectively
As we previously mentioned, save! As we continue to save, we elevate ourselves and our careers; the key is to take advantage of your raises instead of spending them without a purpose. We've heard from many of our friends and team members that they often take the chance to up their retirement or set up an automatic withdrawal when they get a raise. The key to using this style effectively is maintaining the lifestyle before your raise. By doing this, you can see how much all your hard work is truly worth.
Start Thinking About Retirement
As we mentioned in the tip above, retirement... Have you started saving for your retirement yet? You can be honest and not ashamed. According to Business Insider, "more than half of millennials (55%) don't have a retirement savings account." Let's be sure to start as soon as possible. Many employers have matching programs that can take even the smallest contribution and double it.
Manage Your Debt Effectively
What are some great ways to handle current debt and avoid it when possible? When currently in debt, it's crucial to evaluate the type of debt, the current interest rate, and the loan length. By knowing these factors, you can effectively consider which loan will be the most beneficial to pay off. Whether you decide to pay off smaller loans or larger loans, paying off debt will help you save in the future. Alternatively, things can arise that can force you to acquire debt but if saving is your number one priority, avoid bad debt if you can.
Limit Unnecessary Purchases
We all have things that we buy that are unnecessary, which can be very expensive. If you spend $5 a day from your local coffee stand, that comes out to $1,825 a year on coffee alone. Just by taking a look at your purchases, you can affect your savings significantly.
An Emergency Fund Can "Save" You
As the basketball coach John Wooden once said, "Failing to prepare is preparing to fail." This is the way to think about your emergency fund because if an issue arose, emptying your savings or checking can detrimentally hurt your financial future. It is recommended that you have at least 3 months' worth of income saved in a separate savings account. Reasons to use this account can be anything from loss of employment or unexpected medical bills. It may feel unnecessary, but we promise that you'll be glad it's there if you end up having to use it.
Millennials, we're here for you, and we are here to help you and your communities. We would love to be a part of your financial future and whatever comes next. If you would like to open a savings account or learn more about us, visit p1fcu.org