It feels like just yesterday we entered 2023, and now 2024 is almost here. While time passing can bring mixed feelings, millennials need not worry. With age comes wisdom, and in the new year, there’s a chance to make better financial decisions.
Millennials, aged 27 to 42 at the beginning of the year, have unique financial goals and worries compared to other generations. To shed light on this, GOBankingRates consulted money management experts for their advice on the best money resolutions millennials can adopt in 2024. Here are the top 10 suggestions.
10. Establish an Emergency Fund
Despite experiencing global economic challenges and a pandemic, many millennials still struggle to maintain emergency funds. Building or replenishing a fund covering 3-6 months of living expenses is crucial for financial security during unexpected events.
9. Tackle Student Loan Debt
While hopes for significant student debt forgiveness in 2023 didn’t materialize for most millennials, it’s vital to strategize repayment efficiently, considering options like refinancing or income-driven repayment plans.
8. Invest in Financial Education
Continuous learning about investment strategies and long-term financial planning can lead to better decision-making and more opportunities for wealth accumulation.
7. Plan for Homeownership
Despite hesitancy among millennials regarding homeownership, assessing the feasibility of buying a home, saving for a down payment, and understanding mortgage options is essential for long-term financial planning.
6. Invest in Career Advancement
Investing in skills development and career advancement opportunities can lead to higher income and improved job security in a dynamic job market.
5. Boost Retirement Savings
Starting early and increasing contributions to retirement accounts, including employer-sponsored plans and IRAs, is crucial for building a substantial nest egg over time.
4. Utilize Employer Retirement Plans
Taking full advantage of employer-sponsored retirement plans, especially those with matching contributions, is a straightforward strategy for enhancing retirement savings.
3. Develop a Debt Repayment Strategy
Creating a plan to pay off debts on time, prioritizing high-interest balances first, and exploring options like refinancing can help manage debt effectively.
2. Conduct a Financial Wellness Checkup
Reviewing budgets, insurance coverage, and long-term financial goals is essential for a comprehensive financial wellness checkup at the beginning of the year.
1. Invest Wisely
Understanding the difference between speculation and investment and opting for low-cost, globally diversified investments can increase the likelihood of achieving financial goals.
