Balancing Debt & Savings for Young Professionals
Millennials do things a little differently from the previous generation, and that includes their financial habits. Twelve Points Wealth Management has two quick tips to help Millennials make the right decisions.
Greg Phillips, 401(k) Operations Assistant, recommends Millennials contribute to their employers’ 401(k) plan if one is offered. Furthermore, if the employer offers a match, Millennials should try to get as close to that as possible, as it equates to free money. When you’re in your 20s or 30s, retirement may seem far away, but down the line you’ll thank yourself later for starting to save early on, especially since such investments will compound in value over the years.
Jared Bilodeau, Associate Wealth Advisor, knows that many Millennials struggle with debt, particularly student debt. So how are they supposed to save for retirement while also managing and paying off that debt? Jared recommends first paying off high-interest debt – such as credit card debt – as quickly as possible. Then, for low-interest debt, around two or four percent for example, pay the minimum amount while contributing as much money towards retirement investments as possible.