Experts agree, saving money when you’re young is best. This gives more time to invest money, build interest and generate compound interest.
Why Do Millennials Ignore This Advice?
- Because saving is not fun! Recent graduates are finally enjoying a salary.
- You want to spend it. Traveling, buying a shiny new flat-screen and going to expensive bars are the priorities. However, you may not be thinking about saving for the future. Things like a mortgage and future children are the last things on your mind.
- In addition, you feel overwhelmed at the idea of building a savings.
“You think “Where do I start?” or “Why is this important?” So you may not save at all.”
What To Do About It?
Don’t get discouraged by saving large amounts of money. Prioritize, even saving small amounts can help. More so, don’t get overwhelmed about saving for the rest of your life. Think short-term to stay motivated.
Ways To Start Saving Money, It’s All About Your Mindset
- Create an emergency fund. This one is obvious. An emergency fund is important in case of job loss, career change or illness. Having an emergency fund will help you see that it is possible to save a chunk of money. It will give you the motivation to create other savings and investments.
- Save to invest. It’s hard to save when you don’t have a goal. Even $20 a month is a good start. Keep in mind that this monthly savings will add up to a larger amount that can be invested.
- Invest to save. This is the focus of The Fortunate Investor. Keep in mind that the money you invest will come back to you with the right investment strategy.
It’s ironic that everyone says to save young. However, not many millennials do this. So it’s important to focus on saving and investing strategies that are best for your stage in life. Now millennials can be fortunate investors too.