4 Financial Hurdles Faced by Millennials
Filed under: Financial Fitness
Check out almost any financial blog, you will find plenty of advice geared toward Baby Boomers. This group is often singled out for discussion, because they’re nearing retirement and many of them are ill prepared to stop working.
But when it comes to financial planning, Millennials face problems of their own. Even though retirement lies on a distant horizon for this group, early and regular planning is important to ensure financial stability. And yet, Millennials commonly face four significant barriers to sound financial planning.
Millennials are unwilling to make sacrifices. In a recent study, 30 percent of Millennials indicated that they’re unable to save for retirement due to high monthly bills. While many of these expenses are unavoidable – housing or electric bills, for example – 44 percent of Millennials said they are unwilling to sacrifice non-necessities such as vacations.
Millennials’ budgets are strained under the weight of student loan debt. The cost of college tuition is vastly outpacing wage growth. Millennials are graduating with more student debt than they can realistically pay off via the paychecks they now earn.
Millennials are unsure about how to invest their money. About half of Millennials say that they aren’t sure of their best investment options. While over-prepared for the job market, often boasting pricey college degrees, Millenials appear to be under-prepared in the area financial expertise.
Millennials rarely meet with financial advisors. Only 7 percent of Millennials are currently receiving professional investment advice. In other words, those who are the least prepared to make financial planning decisions are also the least likely to seek the input of an advisor. This could be due to the fact that financial planners tend to target Baby Boomers, and fail to reach out to connect with the younger generation.
For younger workers, covering monthly living expenses plus large student loan payments is often a significant challenge. Retirement planning is seen by most Millennials as a luxury, not a necessity. But this could be a costly mistake down the road, as these younger workers are missing out on an important resource that they can never reclaim: Time.
That’s why many Millennials are turning to home-based businesses. The secondary income provided by part-time work can boost monthly budgets and provide much-needed funds for retirement savings. The Millennial who boosts his or her income by even just a few hundred dollars per month – and sets aside that money in an interest-bearing investment vehicle – will enjoy a vastly different standard of living in retirement.
For more information on how a home-based business can provide the income you need to fill in the gaps, give us a call! We can show you how working from home can help you earn the extra income you need.