The financial habits of millennials (born in the years 1981 to 1996) have been heavily debated throughout the years. Some articles mention that they’re infamously known as being the generation with no savings, quoting real millennials saying they just don’t make enough money to save for retirement. Others mention that they’re the greatest generation of savers out there. If you’re a millennial and you're not sure where you’re at with your savings or how much you should be saving, don’t worry. Check out your progress on that hard road to financial stability right here.
For younger millennials (born 1990-1996): 0.5x your annual income
The youngest millennial should be 25 years old by this year, 2022. You should at least have saved down as a habit by this time and have saved at least 0.5x of your annual income. When it comes to putting your money into banks, it’s good to have a regular savings account—this is always a nice place to start. What’s even better is looking into digital banks that give high-interest rates, so that your money won’t just be kept safe, but it’ll be earning as well! Start early and you’ll be well on the way to becoming financially stable.
For millennials in their 30s: 1x your annual income
By this time, you’ve already been working a considerable amount of time and must have at least 1x of your annual income as savings. You might also be living more comfortably right now as compared to your twenties, earning higher and being able to spend on more luxurious things. Heck, you probably even have investments to let your money grow.
While this is great, investments have certain risks to them. And if you don’t know where to start, a good entry into big growth is a time deposit. Now, we know what you’re thinking. Time deposit interest rates are super low so it might not be worth it. Digital banks are the key here. They can afford to give high-interest rates, like Tonik’s 6% Time Deposit product. Simply deposit a minimum of P5,000 and watch your money flourish. Then when you’re ready, you can get into stuff like bonds, mutual funds, stocks, and probably even crypto!
For millennials approaching their 40s: 3x your annual income
The oldest millennial is turning 40 this year, and those in their late 30s aren’t too far off as well. It’s time to seriously prep for the future. At this age, you may have a promising career, stable (and high) income, and a portfolio of investments. 3x your annual income could look like a lot but it’s possible. You can go for this saving goal and still be able to live the life you want, including funding your kids’ schooling, moving into a better house, getting a sweet new ride, and more. Something that can help is loans, which are also a great way to build your credit score. Though part of the millennial stereotype is being known as the generation with no real savings, you can always prove the haters wrong!
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