Millennials are saving for financial freedom—not retirement
Source: Yahoo Finance
Photo from Pictures of Money
Millennials often get a bad rap when it comes to financial responsibility. But it turns out those stereotypes may be off base. Millennials are saving more money than any other generation, according to a new study by Bank of America and Merrill Edge. But it’s what they’re saving for that really sets them apart from older generations.
Saving for financial freedom is the No. 1 priority for millennials — 63 percent of millennials said they’re saving a set amount of money to enjoy their desired lifestyle. This is a stark contrast to older generations: the majority of the Gen X and baby boomer generations prioritize their savings specifically to leave the workforce and retire.
This shift speaks to the bigger differences in the ways millennials and older generations view money, and what they prioritize in their lives. While it may not sound surprising that younger workers aren’t thinking about nest eggs as much as older generations, what’s a little different here is that they’re not thinking about retirement as a phase of life, let alone working to afford it. Millennials listed personal milestones as their top priorities: getting their dream job and traveling the world trumped more traditional goals like getting married and having children.
“Silly question, right? Who doesn’t want some extra cash? The good news is, there are simple things you can do in just 20 minutes to avoid wasting your hard-earned dollars. Jump right in and get started to take advantage of the savings.”
Photo by 401kcalculator.org
1. Ask your credit card company for a reduced interest rate or an annual-fee waiver
2. Cancel a service that isn’t providing value
3. Raise your insurance deductible (if you can cover it)
Let’s consider some of the financial realities about owning a home.
In an opinion piece in the Fresno Bee newspaper, the writer made the case for why Congress should keep a tax incentive to encourage Americans to be homeowners. Regardless of your opinion on the matter, the author’s points on the financial positives of homeownership were beneficial and worth a read.
“Owning a home is one of the best ways to build long-term wealth, providing both equity accumulation and tax benefits over time. In 2013, the median net worth of homeowner families was $195,400, while the median net worth of renters was $5,400, according to the Federal Reserve.”
“Homeownership strengthens communities, encourages higher civic participation, boosts children’s educational performance, lowers crime rates, and improves health-care outcomes. Moreover, homeowners bring more stability to neighborhoods because they tend to move less often.”
“Homeownership helps provide predictability. Individuals can enjoy steady and consistent housing costs thanks to the tax incentive that allows them to own a home. That’s because a fixed-rate mortgage payment might not change for 15 to 39 years, while rents typically increase 2 to 3 percent a year.”
“Credit cards can be a dangerous thing when abused, but when used correctly, they actually offer a number advantages that cash simply can’t match. To make the most of your credit card, be sure to steer clear of these major blunders.”
“Most people don’t put much thought into their credit scores until the time comes to apply for a loan. If you expect to need financing in the next few months and aren’t convinced your credit score is high enough to get you approved, you’ll need to act quickly to improve your chances. Thankfully, there are several things you can do to boost your credit score in record time.” (“4 tips to increase your credit score fast.” Maurie Backman. 8 May 2017. http://money.cnn.com/2017/05/08/pf/credit-score-tips/index.html?iid=Lead)
One way to increase your credit score? Ask for an increase in your credit limit. But read CNN’s article for more tips!