Financial Success for Millennials and Recent College GraduatesSubmitted by Washington Wealth Advisors | Falls Church and Ashburn, VA on May 20th, 2019
By Todd Youngdahl, CFP® and Ryan Muscatella
We wanted to take this opportunity to recognize our team member, Ryan Muscatella. Ryan supports Todd's practice to provide the highest level of financial planning and client service. He is currently a Candidate for CFP certification. We are proud to share that Ryan recently passed the bar exam, which was the next step in obtaining his CFP certification. Hats off to you, Ryan!
Ryan utilizes his CFP knowledge daily working on detailed financial plans and analyses that help clients see how on track they are in meeting their various financial goals. We are excited to offer Ryan's insights on what recent graduates and those in the millennial generation should consider to set themselves up for financial success during this period in their lives.
Thoughts from Ryan for this new life stage ...
Life presents us with many milestones. One of the more confusing, and potentially stressful, ones is the transition into the “real world” after college graduation or landing that first new job. Life seems to be moving quickly and you may feel out of control as you may move out of your childhood home to a new city, pay your own rent for the first time, give up the luxurious meal plan you relied on for the last several years. On top of all that, you are working with new colleagues for 40 or more hours per week. We Millennials can significantly benefit from having a healthy relationship with our finances. It is never too early to seek financial advice from a trusted financial planner.
1/ Plan a budget
Setting up a budget is an easy and important financial move to help you feel more in control in this new phase into adulthood. It gets you on track for the future and doesn’t have to be complicated. You just need to see what money is coming in and where it is being spent. That way, you can make adjustments as you get into the routine of your new lifestyle. Knowing how much you make, how much you spend and how much you have leftover helps you prioritize. Having a budget and sticking to it is empowering as you establish your priorities for the months and years to come.
2/ Set Goals
Setting goals and working to achieve them provides a gratifying reward and keeps you on track as long as effort is put toward the goal. Achieving a set goal creates a positive effect, even if that goal is as simple as making your bed in the morning which has proven to enhance an individual’s productivity throughout the day. Goals for this chapter of your life may include to pass a specific certification by a certain age, save a portion of your salary every month, workout at your local gym 3 times a week, or cook lunch and dinner a few times a week instead of dinning out. So many choices can feel overwhelming, but if you set goals and create some structure, you can more easily stay on schedule to prepare for what is ahead.
3/ Be 'In the Know' Regarding Family Account Plans
Knowing what accounts are in your name or may be provided to you in the future can save a great amount of time if something were to happen to owner of that account. Whether parents have certain insurance policies for themselves or monitor a savings account opened in their child’s name, it is important to know where it is held and how to access it by username and password. According to AgingCare.com, “If your parent were to fall ill or become incapacitated, someone has to take over paying bills and managing their money.” It is better to be prepared with readily accessible information, than to have to figure it out alone later.
4/ Don’t let debt hold you back
Millennials can have a plethora of debt ranging from student loans, credit card bills, or even car payments. Paying off debt and saving for the future are both important priorities. A good way to tackle both is to set an amount each month or pay period to both debt and savings. You’ll be paying off debt while also benefiting from the compounding interest when saving and investing your money. Retirement may seem like a distant goal with debt staring you right in the face, however, getting the ball rolling on your long-term savings plan now will put you in much better spot for the future.
5/ Enjoy yourself!
Financial security and independence should always be a top priority for anyone, not just including Millennials. In order to attract and retain talented Millennials, companies are moving towards a better work-life-balance culture. Forbes states that “Spending time with family and friends, investing in experience over material goods and helping others out in this world matter most to millennials.” Millennials want to work hard, but they also want to enjoy themselves along the way. With that said, I offer some tips to enjoy this new chapter of your life. Just moved to a new city? Go explore the area. Miss playing a sport? Join a local league and get back to into it. Still living at home? Great, spend time reconnecting with your family while you were away at school or in another town.
It is important to have your finances in mind, but it is also equally important to engage in the everyday experiences of life.Should you need some support in getting your planning strategy for savings started, connect with us at email@example.com or 703.584.2700. We are here for you!
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