A recent Bankrate.com study discovered that millennials are saving more than they did in 2015. According to the study, 62 percent of millennials stated that they are saving at least 5 percent of their paycheck; this is a 42 percent increase from the previous year.
This is great news for millennials since they are often referred to as the “Yolo Generation.” However, on the flipside, 21 percent of all working Americans are living paycheck-to-paycheck.
One of the first rules of personal finance is to pay yourself first. The general guideline is to set aside at least 10 percent of your income before you pay any of your bills. The reason is, paying yourself first gives you financial security.
Over time, setting aside at least 10 percent of your income allows you to:
- Build your savings account
- Create an emergency fund
- Invest in a retirement account
If you’re buried in debt, saving consistently might be difficult. Many millennials are already stretch financially thin since they are repaying their student loans. Unless you are already living like a monk, you can still find other ways to save more. It boils down to “need vs. greed.”
When you analyze your finances, what is one thing you can give up? Starbucks?
Mines is bubble tea.
Sources: Bankrate.com, Marketwatch.com (picture credit).
Disclaimer: This is a personal blog. Ryan Oda (#RS-75450) is a licensed real estate salesperson with Benn Pacific Group, Inc (#RB-19423). The opinions expressed here represent my own and not those of Benn Pacific Group, Inc., its agents, and or its affiliates. My thoughts and opinions can change over time. This blog is intended to provide a semi-permanent snapshot of a selection of various thoughts and opinions that may not be the same, or even similar, to those I may hold today.
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