Recent reports show that, due to COVID, one out of five Americans are saving less for retirement. People across the country are struggling to save, but that’s not the case for millennials. Many millennials have increased their retirement savings since 2020. But while this generation has been able to squirrel money during the pandemic, they’ve struggled to increase wealth, due to most part to student debt. Nearly half of all millennial households deal with some form of student debt. If you’re a millennial and want to increase your wealth and boost your retirement plan, you’ll need to think outside the box.
Don’t be afraid to ask for help
If you’re unsure how to get a retirement plan started, don’t be afraid to consult with a financial adviser or online resources. There’s a lot of information out there, and a little guidance can help you avoid costly mistakes. Also, remember that being in debt doesn’t mean there’s no point in starting to plan your retirement. In fact, it makes it that much more important to create a detailed financial plan for your retirement. If you’re in debt and are looking for a good place to start, resources like this loan payoff calculator can help kick off your financial planning for the future.
Get your debt under control
It’s easy for debt to feel overwhelming and even impossible to reign in. It’s common for millennials to have multiple credit cards and student debt. That can complicate things and make it feel like you’re being attacked from all sides, but there are many tools out there designed to help you get your debt under control and show it who’s the boss. Information on the pros and cons of credit card debt consolidation and loan payoff can help you find personalized solutions for your financial plans.
Everybody’s financial situation looks different, so it’s important for you to find customized tools that can help you with your specific needs. Make paying down your debt a priority. You may have to make some sacrifices now to make sure you can secure yourself financially down the road, but it’ll be worth it. Did you get a holiday bonus at work? Instead of upgrading to a 60-inch QLED, maybe pay a little extra into your debt’s principle. You will feel much better once you get out from under that debt, and it will open your retirement plan options.
With so many different forms to invest and create passive income, to create a truly diversified retirement plan, do your research on the many ways to increase wealth at the various stages of your plan. When you are younger, you may be willing to take a bit more risk. Perhaps exploring cryptocurrencies and NFTs? But these are volatile markets, so do not forget to balance your portfolio through asset allocation, Roth IRAs, and workplace retirement plans like 401(k)s (which often include a fund-matching program.)
Okay, the principles behind these ideas are not necessarily new, but how you execute them is what is really key here. In the age of data and information, it is more important than ever to use the data available to you. There are a lot of especially useful tools that can help simplify the complexities of personal finance and retirement planning. Use that data to gather information, take control of your debt, and diversify your portfolio.