Don't think savings is a big deal? Ask anyone who is running their own business, decided to retire early or abandoned their old job to go after their dream career. Savings was their saving grace, no pun intended.
The Fall 2014 Merrill Edge Report showed that 80 percent of millennials think about their long-term finances when they are paying bills; nonetheless, they also need to pay themselves.
A recent The Huffington Post article, titled ”4 Things I Wish I Knew About Money in my 20s,” emphasizes that the most important thing a millennial can do today to improve his or her financial future is to start saving. It's important for millennials to find a balance between paying off any debt and saving for their future goals and retirement.
Making retirement a priority among many competing financial needs can be a challenge. The original article recommends that millennials go through their employer-sponsored retirement plan, such as a 401(k) or 403(b) account, or set up an automatic transfer from their bank or brokerage account into their personal IRA, Simplified Employee Pension (SEP-IRA) or SIMPLE IRA.
Along with retirement planning, a budget must be your top priority. While creating a budget might be the very last item on your to-do list, it’s essential to maintaining a solid financial foundation. Budgets are essential to estimate your monthly income and expenses, and at the end of each month, you should look at how your actual spending stacks up against your budget and make adjustments. Budgets also help to make sure you live within your means, and help you plan for day-to-day spending.
Reference: Huffington Post (February 2, 2015)”4 Things I Wish I Knew About Money in my 20s”