Millennials, Gen Xers & Personal Finance

Our clients in Overland Park, KS range in age from 30 to 60 years old. We’re focused on bringing financial planning to Millennials and Gen Xers, assisting them with the management of their own student loan debt while planning for their children’s education.

Many people don’t know how to balance saving for a new home, paying off debts, college for the kids, and retirement. Everyone’s situation is different, and your plan should be tailored to your needs. We focus on what’s happening in your life now, while keeping an eye on your future.

Millennials & Generation Xers: The Money You Make

The more you make, the more you can use to meet your financial goals. You must do your research on your industry to ensure that the amount you’re earning is as much as what your time is worth. Online resources such as Glassdoor can provide a gauge of standard industry salaries, and there are plenty of strategies to negotiate your salary.

Clearly define your financial goals, including paying for your (even future) child’s education and funding your retirement.

Millennials & Generation Xers: The Money You Save

Having an emergency fund is a well-known way to maximize preparedness, just ask Investopedia. They usually suggest six months of your income saved for emergencies like automobile repairs, unexpected household expenses, or the loss of a job.

According to this study, 57% of millennials have an emergency savings fund, but less than one-third (32%) believe their fund could cover basic monthly expenses for more than six months.

A strategy that NerdWallet suggests is to automatically deduct money from a paycheck to designated areas, like a savings account or IRA. Lots of bank accounts even allow you to create multiple savings account “buckets” for your various goals. Consider strategies that will help you save.

Millennials & Generation Xers: The Money You Spend

It can be a tough decision to determine how to wisely spend your money if you don’t have a budget. Some common themes include the tough decision between saving for retirement and paying off student loans. This was talked about with strategies for consideration in a recent article title Pay Off Student Loans or Save for Retirement?

The average person has five recurring bills and 10 elective subscriptions (source). People aged 18-34 are particularly likely to put their purchases on autopilot, with 87 percent paying for some sort of subscription service, according to a recent study by the Media Insight Project.

Many of us keep paying for them without taking advantage of any of the benefits. Check your credit card statements and make a list of each subscription service you’re paying for. If you find something on the list you haven’t actually used in the past three months, it’s might be time to cancel it. You can always sign up again later, and you might even get promo pricing used to entice returning customers.

Many people suffer from “lifestyle creep.” This is what happens when your discretionary income goes up (like when you get a raise!), and your lifestyle or standard of living increases right along with it. See Money Under 30 for potential strategies to reward yourself for your hard work and success, while also making sure that you’re keeping an eye on your bigger financial picture.

 

Millennials & Generation Xers: Retirement

More than half of Millennials (63%) started saving for retirement before age 25, but less than one-third are saving enough, according to a survey.

The time to start planning for retirement is not a few years before you decide to enjoy your golden years, it’s when you begin your career. A successful strategy should begin decades before that big date, including the various steps to achieve that goal and all of the other life milestones you’ll hit along the way.

We have seen way too many adults realize retirement was just around the corner and scramble for a solution. Years go by and then they realize that their financial choices may not have been the right ones. Unfortunately, they’ve lost valuable time and maybe even investment opportunities.

83% of Millennials take full advantage of matching contributions when offered through their employer-sponsored retirement plan. If your company offers a 401(k) plan with an employer match, that is essentially “free” money to you. By contributing at least the match percentage, you may receive the full match.