It’s never too early or late to start saving. But different generations need to look at saving in their own unique way. What works for today’s 20-year-olds will not work for folks in their 50s. The professionals at Broussard Poché, LLP have broken down savings tips each age group should focus on when setting money aside.
Young Millennials (teens to early 20s)
- Budget: This is a lesson many generations before had to learn the hard way, live within your means. Create a budget and practice living on only what your bring home.
- Saving Habit: If you start now, you can get a jump on many people from other age groups. You now have the advantage of automatic savings, use that technology to set money aside.
- Learn about credit: Not just the ins and outs of credit cards, the importance of good credit. Good credit will impact you down the road. Learn how to review your credit report and do so regularly.
Older Millennials (late 20s and early 30s)
- Risk management: It’s ideal that people in this group build a savings account that will cover job loss or emergencies. 6-12 month’s salary is best practice. Check the status of your insurance policies and consider disability insurance, which will help pay the bills in a health crisis.
- Retirement: Use what your company offers, or enroll in your own retirement plan. Time is on your side here, if you start now you will be in good shape when retirement age rolls around.
Generation X (Mid-30s and 40s)
- Retirement vs College: Look, we know you want to help your kids with college, but if you are just starting to save—you need to choose retirement. College students will have access to finical aid, but retirees are on their own.
- Healthcare: At this age, medical issues can start appearing so be sure you have money set aside for a health emergency or unexpected issue. Also, review your health and disability insurance options.
- Will: If you don’t have a will in place, be sure to create one. No one likes to contemplate the worst, but if it happens, you want to make sure your children and spouse are looked after.
Baby boomers (50s and 60s)
- Retirement savings: This is now the priority. Remember, workers over 50 benefit from higher savings limits on 401(k)s and IRAs.
- Financial professional: These are when the major financial questions come up and you may not have all of the answers. Find a financial professional and get to work.
- Budget: Be sure you are living within your means. This doesn’t mean you can’t travel or splurge, but just make sure you have the finances to cover expenses.
- Financial professional: Talk to your financial professional about the best investment strategies that can benefit you the most.
Please share this information with the people in your life that are looking to be savings savvy at any age. There is always something that can be done to make yourself and your family more financially secure.