Bellmore Group Management Services, Tokyo Japan Tips for Avoiding Financial Mistake for Millennial

Bellmore Group Management Services, Tokyo Japan on Tips for
Avoiding Financial Mistakes for Millennials
If you are in your early and feel you should prepare yourself
for financial success while avoiding serious mistakes, what do
you need to do? Here are some valuable tips.
Firstly, relax! You are in the best time to be enjoying life; and
getting started on the road to a secure financial future is one
of the wisest moves you can do. Go ahead and have some fun,
discover exciting avenues and be open to potential ventures
and adventures you can pursue for a lifetime. Do not become
paralyzed with the fear of making mistakes or you will miss
out on fruitful and gratifying opportunities. That would be
counterproductive – learn to embrace mistakes as they can be
stepping stones to learning and growing.
Nevertheless, some mistakes can cause disastrous and long-term financial effects compared to others, although
they may seem harmless on the surface.
Go over these five financial missteps that can adversely undermine your financial life. Knowing how not to
commit the same mistakes will greatly enhance your potential for building your personal wealth.
Mistake #1: Delaying on Your Savings Plan
This mistake tops all other mistakes in terms of keeping people from achieving a certain degree of financial
stability. According to a survey, 39% of all respondents admitted regretting not having saved much earlier on
while 63% claimed that saving early is the best advice they could offer to people.
Old people should know better than the young ones on this matter. Consider this: At 25, a millennial who tucks
away 10% of her $30,000 income yearly will accumulate more than $620,000 at 65, based on a 2% annual
raises and a 6% yearly rate of return on investments. If she postpones it for only five years, the nest egg goes
down by about $140,000 and waiting 10 years reduces it by over $250,000.
You see how delaying on your plan to save can reduce your potential earnings in the future? Check out online
apps that help you calculate how much you will accumulate if you start now.
However, there is a way to avoid this error. If your employer offers a 401(k) plan, contribute the minimum
allowed amount to avail of full benefits of your employer matching funds.
Open a Roth IRA or Traditional IRA account at a mutual fund firm if your employer does not offer 401(k).
Contribute to your fund using automatic transfers from your checking account every month.
While doing that, set up an emergency fund amounting to a minimum of 3 months' worth of living costs in a
savings account, as a buffer in case you lose your job or for other emergency needs.
Remember, the important thing is to develop the habit of saving weekly or monthly and to continue doing it in
your entire working life.
Mistake #2: Borrowing money you do not need
There are times when borrowing is essential, such as for a house, a car or for a college education to enhance
your earning capacity. However, taking out a loan to sustain a kind of lifestyle above your pay level will cause
big problems.