5 financial tips for millennials in the Midwest
(BPT) - Your financial health impacts your life, not only in the way you live today and in the future, but in the legacy you leave behind to those you love the most. Whether you’re paying student loans, buying spin classes, or caring for an aging loved one, the way you live today and in the future is shaped by your financial health.
As a recent national Guardian survey, “ Millennials and Money: Understanding What Drives Financial Confidence,” shows, millennials want and need both digital and human experiences to be financially confident. While leveraging the wealth of information at your fingertips, smartphones may equate to smart planning, but the role of the advisor is also essential in developing — and sticking to — a financial plan that will help you achieve both your short- and long-term goals. In fact, one in three unadvised millennials report that they are likely to begin working with a professional advisor in the next 12 months.
When breaking down the data by region, the study found that those in the Midwest are less confident in their financial futures than others across the nation. Guardian’s study found that on a national level, those who partake in financial planning are more confident in achieving their financial goals. While online planning tools and other digital platforms can assist with financial planning, residents of the Midwest, including millennials, can benefit from face-to-face meetings with an advisor to build their financial confidence.
Whether you’ve been using a financial advisor for years, or you have never thought about meeting with one, working with an advisor can help make sense of all the options available to you and tailor them based on your individual objectives. Here are five financial tips from local experts to help you establish both protection and growth strategies that will help you create and meet your financial goals:
1. Live within your means. Many people across all income levels never sit down and actually create a budget, much less stick to one. Your financial advisor can help you do this by providing clarity into your ongoing expenses and income to give you a baseline of your budget and how much you can spend while still living within your means month after month.
2. Create a plan that positions you on offense and defense. Having a detailed financial plan that clearly states your goals can lead to increased confidence. So much so, when it comes to overall financial confidence, millennials across the U.S. say having a detailed financial plan is equally as important to them as getting a bonus at work. Your financial advisor can work with you to create a plan that clearly states your goals and how you’ll meet them, including offensive methods to proactively grow or invest your money, as well as defensive tools for protection, such as life insurance or disability income insurance.
3. Instill some liquidity in your financial strategy. Growing your income is only one part of the puzzle; you need to have the ability to utilize it as well. Be sure to have liquidity in your financial plan. It is important to plan so that you have efficient access to money in the event of an emergency or an opportunity.
4. Develop strong savings habits. It’s never too early or too late to start utilizing the value of saving. Start good savings habits with your very first paycheck by setting up automatic or direct deposits to your savings accounts, retirement accounts, etc. and make sure that the total is as close to 15 percent of your gross as possible. Thomas Wyatt of Lifetime Financial Growth in Columbus says this can be difficult for many people to contemplate, but your advisor can help you understand exactly how much this total should be and how you can set it aside, so it will be there should you ever need it.
5. Prioritize protection. The most financially confident Americans know that putting protection first in the form of income protection through individual disability insurance, and life insurance, builds a foundation of financial peace of mind today and tomorrow. Millennials know this to be true too, with 54 percent of millennials prioritizing protection over saving and investing (46 percent).
Start focusing on your financial future today
Across the Midwest, many people have already seen the benefits a financial advisor can provide, but if you have yet to work with one, an advisor can help you prioritize essential protection and growth strategies based on your individual needs. In addition to utilizing online tools to manage your personal finance, having a detailed financial plan can increase your overall confidence in achieving your goals. Find an advisor in your area and meet with them for a brief conversation and visit www.livingconfidently.com for more insights and tools to start today.