8 Things Every Generation Y & Z Need to do for Financial Success
Young people who are just starting out in their professional careers often feel like they've been thrown to the wind when it comes to financial matters. It’s odd – but understandable – that they’ve just spent a minimum of four years intensely focused on getting the education necessary to secure a good financial future, yet they frequently enter the “real world” with no actual knowledge of the basic rules of good financial planning.
With that in mind, I’ve put together a collection of our blog posts to serve as sort of a primer for any young professional who wants to make sure all the time and money they invested in their education pays off to its maximum potential. And avoid ending up like these guys.
- Resist the temptation of buying a home before you're ready.
- Get 3-6 months of expenses saved in an emergency fund.
- Start saving for retirement right away, even if you have student debt. You could be surprised at how big a difference starting now will have on your ability to build wealth.
- Don’t leave free retirement money on the table. Make sure to take full advantage of your employer match accounts.
- Create good general savings habits and stick to them. Consistently save a substantial amount of your household income toward future needs, like cars, a home, and your children's education.
- Get your estate documents done now. Even if you don’t have children, you still need a will, power of attorney, and an advance medical directive.
- Get the right insurance. You need life insurance, of course, but you have a greater chance of being disabled by an illness than of dying from it, so make sure you are covered for disability.
- Have an investment philosophy and stick to it.
Follow these guidelines from the beginning to get the jumpstart that so many figure out they need when they are trying to catchup from past mistakes. If you have questions about how to get any of it done, get help from a friend, family member or financial advisor!