Millennials have a reputation for delaying adulthood. Many of them graduated during an economic downturn and are struggling to build their careers, pay down debt, and save up for long-term financial goals.<\/p>\n
As a result, they put off buying a home and car, they\u2019re more likely to live with their parents<\/a> than with a significant other, and they\u2019re waiting longer to get married and have kids.<\/p>\n But despite the stereotypes, millennials don\u2019t refuse to grow up. With the oldest members of Generation Y approaching their mid-30s, many have reached those traditional markers of adulthood. And quite a few have found financial success! It takes more than a combination of hard work and luck. To be a financially successful millennial is to adhere to a certain mindset and set of values.<\/p>\n What do they do differently? I work with some pretty successful Millennial clients, and here are the patterns I see.<\/p>\n The American Dream used to mean marriage, kids, a home in the suburbs with two cars in the garage, and a gold watch after 30 years at the same company. In today\u2019s economic climate, the traditional American Dream is out of reach for many millennials — but they don\u2019t really want that for themselves, anyway!<\/p>\n It\u2019s easy to give in to pressure from family and friends to stick to a certain life script. You buy a home because you\u2019ve been taught that renting is throwing money away<\/a>. You buy a nicer car than you can afford to project a certain image to your friends<\/a>. You take on even more student loans to get a master\u2019s degree because you\u2019re convinced a bachelor’s isn\u2019t enough.<\/p>\n But you can write your own life script — one where you <\/i>determine what\u2019s important to you. Financially successful millennials don\u2019t make money decisions because their friends are all buying condos or their parents want to brag. They take the time to think about what matters to them, and that\u2019s where their hard-earned dollars go.<\/p>\n It takes a healthy dose of chutzpah to follow your own path, but the rewards are sweet.<\/p>\n Following your own life path also means the simple step of spending less than you earn<\/b>. Budget your money and make cuts as needed. If you don\u2019t love setting a budget an easy way to live within your means is this:<\/p>\n This easy method of budgeting allows you to cover your bills and pay yourself first, but still leaves some wiggle room for variable costs like entertainment, dining out, shopping, travel, and more. Albert Genius<\/a> is our favorite budgeting tool to help you keep your spending in check.<\/p>\n Two ways to increase your net worth<\/a> are saving more and earning more. Financially successful Millennials definitely prioritize saving money<\/a>, but they also know that one of their biggest assets is their earning potential.<\/p>\n That means they develop new skill sets by constantly seeking out learning opportunities. They start their own businesses and calculate MVP development cost<\/a>. <\/b>They work hard for promotions at their jobs — and they don\u2019t neglect to negotiate their salaries on a regular basis, especially if they take on new responsibilities.<\/p>\n And should the chance for a side hustle<\/a> present itself, they go for it. A second job, if your schedule allows it, can be a great way to boost your income while learning new things. It\u2019s also a low-risk way to see if a career change would be right for you. If you like the work, you steer your career in that direction. If you don\u2019t, lesson learned — and you still have your full-time job to fall back on.<\/p>\n When you\u2019re young, establishing your career is really important. You\u2019re creating your future earning potential today, and increasing your odds of being able to afford a higher standard of living as your career progresses.<\/p>\n One more thing — remember to protect your ability to work by getting disability insurance, which can come in handy should you ever suffer an illness or injury that prevents you from working for a time. Your job might already build coverage into your benefits package so make sure you elect coverage for short-term and long-term disability insurance during open enrollment.<\/p>\n Saving money is good. Saving money for a specific goal is better! The reason for having a goal is simple: if you have one, you can work backwards to figure out how much to set aside now to be able to afford your goal later. Without that goal, you might not save enough for the things you decide you\u2019d like to do in a few years.<\/p>\n And a money plan involves more than just saving for short- and long-term goals. It also includes retirement planning, investing<\/a>, paying off debt<\/a>, protecting yourself and your valuables with insurance, and even planning your estate if you have assets you\u2019d like to pass along to a loved one.<\/p>\n Some argue that your 20s and 30s is too young to begin thinking about these things, but I disagree<\/a>. At this age, you\u2019re making some of those most important financial choices of your life — deciding if and when to buy a home<\/a>, marry, and have children. And as Millennials head into their 40s, they\u2019ll also be making decisions about caring for elderly relatives, funding their children\u2019s educations, and more. Starting as early as you can is the responsible thing to do.<\/p>\n There are more and more financial planners like myself that are geared towards helping Millennials manage their money more effectively, so if you\u2019re wanting help navigating through these major life changes, feel free to reach out to a CFP for help.<\/p>\n Online banking, budgeting, tax preparation, and investing tools makes it easier than ever to handle your own finances. But a savvy Millennial knows when they\u2019re in over their head.<\/p>\n Sometimes, seeking the help of a financial planner, accountant, tax preparer, or attorney is essential when you\u2019re making adjustments to your financial plan. Usually professional advice is most helpful when you\u2019re going through a big life change, like marriage or divorce, having children, receiving a large inheritance, or even starting your own business.<\/p>\n Professional advice involves an investment of your time and money, but if that help leads to a clear financial plan with specific and attainable goals, you\u2019ll earn that investment back and then some.<\/p>\n It is possible to do all these things — work on your career, plan out your finances — without it taking up all of your time. A few small actions, plus a healthy dose of self-reflection, can really pay off for you. Looking for a good place to start? Check out my ebook on What You Should Have Learned About Money But Never Did<\/i><\/a> or sign up for my free Gen Y Planning Newsletter here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" What separates the millennials who are struggling with the ones who are thriving? We asked a certified financial planner who works with Gen Y to share her thoughts.<\/p>\n","protected":false},"author":22,"featured_media":1690,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":""},"categories":[56],"tags":[],"yoast_head":"\nThey Go Their Own Way<\/h2>\n
They Live Within Their Means<\/h2>\n
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They Aim to Earn More<\/h2>\n
They Make a Plan for Their Money<\/h2>\n
They Know When to Seek Help<\/h2>\n
This Can Be You!<\/h2>\n