As it turns out the group of individuals that have should be focusing on retirement savings the most are the ones that are furthest away from retirement, millennials. If you’re in this under 35 age group then you’d better listen. These are the top 3 mistakes that you make when it comes to retirement.
1- Not saving as early as possible
One of the biggest mistakes millennials make when it comes to retirement is not saving early and often. The sooner you can get started on saving for your retirement then better off you’ll be in the long run.
This all boils down to compounding interest. The sooner you can get your money saved away the better off you’ll be 30, 40, and 50 years from now. There’s just no substitute for saving early and often. We all have a pretty finite amount of time on this planet, and if you don’t take advantage and start saving in your early years you’re going to be regretting it when you get older. Take my advice and start now if you haven’t already.
2- Saving for your kids instead of for yourself
This one might come of as selfish or a surprise to some of you, but you need to be thinking about yourself first when it comes to savings. One of the biggest mistakes millennials are making is saving for their kids college fund before they save for their own retirement.
Saving for your child’s education might seem like an obvious first option when it comes to savings, but you’re doing yourself and your child a disservice if you go this route. You need to think about yourself first and make sure that your retirement goals are being met before thinking about your child.
Another mistake would be saving for college instead of paying off your own student loan debt. Getting rid of your own debt first should be your first priority. Especially debt that is costing you more than you would be earning if you were to invest it somewhere else. Get your financed in order before you try and figure out your kids.
3- Not asking for more money at work
In order to save you need to first earn some money from somewhere. It’s obvious that the more that you earn the more that you can save for your future. But then why are millennials not asking for their fair share?
If you’re currently at your job and you haven’t gotten a raise in over a year then it’s time to ask for one. Get your things in order and set up that meeting with the boss. You need to look out for yourself and get the most that you can get. You have to remember that nobody is just going to give you money, you need to go out there and take it.
If asking for a raise doesn’t seem to be working at your current job and you’ve researched and found that you could be making more at other places for similar work then maybe you need to start the interview process over again for a new job. Whether it’s a new job or your first job you should also remember that when you do get an offer to work that you should always try to negotiate a higher salary.
More often than not you’ll get a small bump when you do negotiate for higher salary. If you’re looking for a number to shoot for then I’d say around 5-15% higher than what they offered you is a good number that you can expect to get. Some companies may lowball you an offer which may allow you to negotiate more than 20% higher. The key thing to know here is your current market value for the work that you’ll be doing. If it’s not in line with what others are getting then ask for more or look for work elsewhere.