Millennials are well beyond the cusp of early adulthood. AOG Wealth Management looks at four healthy financial practices Millennials need to adopt to put them on the path to financial success.
- Keep away from an excessive lifestyle.
Millennials were fortunate enough to have followed the sudden boom in technology that defined the 2000s and the 2010s. This has caused a mad scramble for the latest gadgets year in and year out. Smart wealth management firms in the Washington, DC area advise their clients to avoid spending above your current means and to save as much as you can.
- Implement a savings strategy.
While you may be trying to have more savings, what you set aside could just as easily be spent without effective planning. Focus on the essentials: food, transportation and rent/mortgage. Follow the rule of thirds. A third of your income after taxes goes to needs, a third goes to savings, and the last third goes into an emergency fund. You can then use a third of the contingency fund to splurge on a few of your “wants”.
- Define your lifestyle properly.
Many wealth management firms in DC will advise you to define your lifestyle in clear terms to yourself. If you are set on savings and financial freedom, it is going to mean sacrifices and moving away from frivolous spending. These include considerations like where you live and what you drive.
- Steer clear of lifestyle inflation.
Many people tend to start saving money once they get a promotion or raise; some even delay their 401K contributions. The problem is that promotions and pay raises usually come with an increase in lifestyle threshold. This means you spend at relatively the same rate, regardless of your salary. Whatever your position in your work, put your mind in a thrifty mode.
Whether you are starting out or in the thick of things, be sure to consult a wealth management advisor to see if you are on the right track. We will help you on your way to financial success and advise you in the best ways to protect your assets. Get in touch with AOG Wealth Management and we will help you figure out the best plans for your finances. We will also be more than happy to answer your questions about taxes, investments, and much more.
Securities offered through TD Ameritrade Institutional Services located at 5010 Wateridge Vista Dr., San Diego, California 92121-5775. Investment advisory services offered through AOG Wealth Management, Inc. AOG Wealth Management, Inc. is neither an affiliate nor subsidiary of TD Ameritrade Institutional Services.