As millennials, we have two tips we’d like to share with you regarding debt and savings. Let’s start with a tip on savings. If you have a 401(k) plan offered to you at work, absolutely start contributing to that immediately. Also, if your employer offers a match on that 401(k), do your best to meet that match, because that’s free money in your pocket. A lot of millennial think they have so much time until retirement, which you do, but that time is on your side because your money will compound greatly over the years.
A lot of concern comes from if you have a lot of debt. How do you save toward retirement at the same time? The thing to look at is the interest rates. So if you have high interest rate debt, such with credit cards, you definitely want to pay that down first. However, if your debt is on the lower side, say two to five percent, you can pay the minimum on that and save toward your retirement and use the power of compounding.
Click here for more tips on balancing student loans with retirement savings.