Financial Mistakes Millennials Should Think About

There will soon be more millennials than there are baby boomers. We all know how big an impact that baby boomers had on the economy and life in general. With so many millennials involved in the market, looking for jobs, buying homes etc we thought we should look at the financial mistakes millennials should think about. After all when they reach baby boomer age, they should be enjoying life and living off their savings. So what are these mistakes that they should avoid. let’s look more closely.

Financial Mistakes Millennials Should Think About

Not Beginning to Save for retirement early enough – most people are not aware that if they saved 10% of a $30,000 salary beginning at age 25, they would have $625,000 saved by the time they are 65!. This assumes a 6% income level on the investments average. This is an amazing number and does not take into account raises and other savings that could be added. If you delay beginning to save by 10 years, the amount saved shrinks to $370,000.

Taking on debt that could be avoided – buying an expensive car, various toys, party lifestyle, a larger home than what you can afford all contributes to too much debt and to too much interest that must be paid. Money you will never see again, especially in retirement when you need it.

Believing that Investing is complicated – investment analysts and advisers try to make it sound complicated. Of course you need them to help you figure out how to invest. By investing in dividend paying stocks that routinely increase their dividends year over year you can do well and keep it simple.

Paying too much for financial help – By following the above, you can also avoid paying too many trading fees based on recommended changes from financial advisers.  Also mutual funds with high fees should be avoided.

Not monitoring your progress – Most of all set an investment strategy that makes sense for your risk tolerance level. Implement the strategy and then monitor on a regular basis. Make changes only after solid investigation if it makes good long term sense. Invest diversely and avoid chasing get rick quick schemes.