With mounting student debt, rising housing costs, and a wave of layoffs in many industries, the American dream seems out of reach for many millennials, and for some, the prospect of retirement is uncertain. The situation is terrifying.
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“Thirty-eight percent of early Millennials (born in the 1980s) do not have enough income by age 70, compared to 28 percent of pre-Boomers (born between 1937 and 1945) and late Boomers (born between 1937 and 1945). 30 percent of people born between 1955 and 1964 do not have enough income,” a 2022 Urban Research Institute study shows. The study also states that “Social Security's long-term underfunding could lead to future benefit cuts, further clouding Millennials' retirement prospects.”
It's a depressing time for Millennials, but the good news is they have time to catch up and grow their wealth. Here are his three ways to improve the financial health of millennials.
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pay off credit card debt
One accident can cause financial hardship, and while it's easy to rack up credit card debt, it's difficult to pay it off given the high interest rates. There are many ways to deal with debt, but one option is to transfer the amount you owe on your credit card to a balance transfer card (a card that pays little or no interest). However, please be careful about transfer fees. Typically, this is a percentage of the amount you want to roll over.
More: Almost half of Americans struggle to pay their utility bills: 5 ways to save money
Build savings with the right accounts
It's always a good idea to have enough emergency savings to cover three to six months of living expenses, but it's also a good idea to have funds for things like a down payment on a car or home. The type of savings account you have is important. . High-yield savings accounts offer high annual interest rates and are a good option for growing your savings.
“Right now, with the interest being paid, a high-yield savings account can be a very good and safe opportunity to grow your savings,” says certified financial planner and owner of South County Wealth Planning. One Sue Gardiner earlier told CNBC: Year.
retirement savings
Saving for retirement can be difficult if you can't afford to pay rent and other basic necessities, but putting away as little as $100 a month can get you started. There is still time before Millennials reach their golden years. Therefore, the sooner you save, the better off you will be in the future.
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This article originally appeared on GOBankingRates.com: 3 Proven Ways to Improve Your Financial Health as a Millennial
