Best Saving Strategies for Baby Boomers, Gen Xers, and Millennials

If your plan is to save money for the upcoming year, you will need a plan. Your plan will be determined by how old you are, and what strategy best fits your current stage of life. Unfortunately, there’s no one-size fits all, but there are certain strategies dependent on your financial obligations in life.

Baby Boomers (51-69)

As a Baby Boomer, you are part of the huge generation which makes up over a fourth of the American population. You obviously are in better financial shape than generations after you, but there’s a good shot you don’t have a ton saved for retirement. Only 60% of Baby Boomers have admitted to having a sound retirement account. Chances are you don’t have a pension, and have endless questions about Social Security and Medicare.

If you have these endless questions, and little retirement, you probably feel a bit uneasy. You seriously have to crunch now to start saving, or you may have to give up your lifestyle. Here are a few steps to get started.

  • Go back to work
  • Live within your means
  • Accelerate your retirement savings
  • Make sure your investments are spread out, and not all in one place.
  • Consider long-term care insurance

If you happen to be an empty nester, and still providing for kids, start taking care of yourself fist; it’s their turn to go through life on their own.

Generation Xers (36-50)

Most of these Gen Xers were born between 1965 and 1979, and are in full swing of trying to build their careers and families right now. Some are also caring for their elderly parents. Watching and managing your cash flow is extremely challenging, given this is the most expensive time of your life.

What you want to do is pay yourself first. Each payday set aside a portion of your money so you don’t spend it. If you can, have someone else do this saving for you, whether it be your employer, or your bank, etc. Avoid buying a home you can’t afford, that’s never a good strategy.

Millennials (19-35)

Millennials born between the 1980’s up to 1996 are typically better savers than Gen Xer’s, but only because they don’t have the same expenses. They also live in the moment, and don’t pan that far ahead. This group is least likely to contribute, or take advantage, of their employer’s retirement plans.

This group has one big cost: rent! A bunch of millennials still live at home with their parents to avoid paying this. Rent today is absurd, and swallows around 30% of take home pay.  They also have incurred crippling student debt, which they are trying to pay off.

To keep your spending in control, allow yourself to only spend what you can afford to spend in a given week/month. This way, you won’t splurge more often than you plan.

The advantage this group has is technology. Technology has become a tool to help manage finances. They’ve created apps to track and monitor your spending. It’s only a tool, but you as the owner are responsible for what you do with your money.

Keep a watchful eye on your credit score, because one day will come when you want to buy a house, and you will want to be qualified. 

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