Millennials seriously need to stop doing this stupid thing with their money
Make this mistake — and you’ll pay for it.
Nearly three in four Americans regret doing at least one thing with their money, according to data released Tuesday from financial site Bankrate.com. People ages 30 and older – that’s Gen X, Boomers and the Silent Generation – say they wished they had more stashed away for retirement earlier, but millennials have different financial baggage. More than one in four of the avocado toast-loving generation say their biggest regret is not saving enough for emergency expenses.
Part of the reason millennials have a different regret than other generations is likely because retirement feels so far away and the regret over their lack of retirement savings hasn’t kicked in yet, says Mark Hamrick, Bankrate.com’s senior economic analyst. It could also be because they seem more focused on the present than the future, as a new Merrill Edge survey revealed Friday. According to the study, the majority of people 18-34 say they’re more likely to spend money on travel (81%) and eating (65%) percent) than save for their financial future http://merrilledge.com/report.
Whatever the reasons, the millennials lack of emergency savings is a big one. More than 30% of millennials literally have no savings, according to a survey from GoBankingrates.com — which means an emergency would be a huge financial setback.
The thing is, emergencies are more common than people think. In a given year, nearly half of Americans have at least one unexpected expense, according to data from American Express — and these kinds of emergencies can be costly. The most likely problems, according to American Express, were car trouble and health care, both of which can cost hundreds or thousands to handle.
Ideally, you should have 3-6 months worth of income in your emergency fund, says Kathleen Hastings, a portfolio manager with FBB Capital Partners in Bethesda. But, as Sheri Conklin, founder of Conklin Financial Planning in Roseville Calif., notes, this can be difficult for young people “given the competing priorities of paying for school, paying down student loans and getting that first apartment.” Her advice: “Start with finding $5 to $10 to put away a week and build up to 3 months expenses. Or, aim for $500 to $1,000 to start.”
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