I was featured in the Washington Post this week (link at the end) in an article about millennial finances. The article digs in to why young professionals are anything but traditional. It also gives some great examples about how young people are using smart financial planning to live the life they want now as well as in the future. I would like to share more thoughts I have on the subject since it’s something I help my clients do all the time.
If you assume it’s a good idea to wait until there’s more financial or job stability to tackle your finances, it can be a potential pitfall for young professionals. Waiting means missing out on years worth of good planning and compound interest. Instead you should start saving early for retirement (more than you think) and prioritize goals. Review your goals regularly to see if they still make sense and keep saving along the way.
Many of the young professionals I know are seeking out careers, finding out they don’t like them and pivoting a lot faster than previous generations. This creates financial challenges because there’s less continuity for planning retirement contributions, paying down debt, and achieving other financial goals.
But millennials are ok with that. The concept of financial security for millennials is more about financial options and freedom than it is about predictability. A millennial’s financial plan is going to change pretty drastically from year-to-year, especially in their 20s and 30s because they may not know in which city they will be living or what job they will have next year. The path isn’t a straight line, it’s more like a rock wall that could take them in any direction.
Financial planning for millennials is really about weaving a strong rope that will help make sure they are supported no matter which path they choose. In my experience, if you don’t have a goal, you won’t work towards it. If you do have a goal, you’ll make some progress even if the target or timeline ends up changing. I’m here to help you discover your goals and work out plans for meeting them when you’re ready.
View the entire article at the Washington Post — “Balancing Act: Why Millennials are Taking Their Time Reaching Financial Milestones.”