What most people don't realize is the amount of working income needed. The conservative estimate is that a person should be able to replace 80% of his or her working income in retirement.
Santa Monica, CA (PRWEB) May 29, 2013
Today millennials* are faced with expensive life events that can slow savings and debt management such as attending college, finding a first job, getting married, purchasing a home, etc. and have limited budgets to work with as well. Despite the current state of the economy, those between the ages of 18 and 34 are less likely to change their spending habits so the consumer savings team at PromotionalCodes.com has five savvy tricks to incorporate to help reach financial goals faster.
1. Use the Internet, mobile devices and social media to cash in on savings – Cutting back on unnecessary purchases is one way to accrue extra cash, but there are additional ways to save without having to give up all manicures and lattes. Using coupons and online promotional codes to save on budgeted purchases can help reach financial goals, especially the large ones like vacations, furniture and home renovations where consumers can easily save hundreds of dollars in one transaction.
Since millennials have the highest social media penetration of any generation, experts at PromotionalCodes.com also recommend shoppers follow their favorite brands on Facebook and Twitter to find exclusive savings and discounts some retailers only offer on social media platforms. Likewise, many mobile apps such as the PromotionalCodes.com Coupon App for iPhone are specifically designed to help consumers save on the go and check for online deals when shopping in stores.
2. There’s no time like the present to start contributing to a 401k – For millennials entering the work world, it is important to explore their companies 401k and retirement plan options and start contributing. While retirement may seem so far away, planning early in life will help ensure the golden years are truly golden.
“The biggest factor in what a person’s nest egg for retirement totals at the end of his or her career is not necessarily the amount saved but the amount of time they save for. Tax deferred growth is one of the most powerful ways to build wealth and Albert Einstein referred to compounding interest as the eighth wonder of the world,” said registered financial representative Gary DiLoreto. “What most people don't realize is the amount of working income needed. The conservative estimate is that a person should be able to replace 80% of his or her working income in retirement.”
3. Speed up emergency savings plan – According to a recent survey by the National Foundation for Credit Counseling, 62 percent of Americans have trouble with both spending less and saving more. It is good to have a rainy day fund set aside with at least three to six month’s salary in case something like a lay-off, illness or major car repair occurs.
Saving can be difficult, but contributing a small amount each month can add up to great savings in the long run. Once monthly bills like rent, food, car payments and utilities are accounted for, divide the rest between savings, debt payment and a fun fund.
4. Comparison shop for the best prices – Whether smart phones, high-definition televisions, video game systems or MP3 players, millennials love technology and own many, if not all, of these items. While these can all be extremely pricey, they can also be found at discounted prices online by using promotional codes and coupons. By visiting sites like PromotionalCodes.com, consumers can compare prices from major retailers like Dell, Best Buy and Verizon Wireless to find the latest technology and the lowest prices.
Comparison shopping isn’t just great for technology though, using this method when shopping for anything online will help ensure the best prices possible. Likewise, when shopping in stores, using a mobile phone to compare prices online will ensure that users never pay too much for an item and will also halt impulse purchases.
5. Stash gifts throughout the year and save – The holidays and wedding season can be extremely expensive times of the year, so planning in advance will go a long way to maximize savings over time. See a gift in July that mom would love for Christmas? Scoop it up and hide it away, but make a calendar reminder for November or December so the gift isn’t forgotten.
Many major retailers like Macy’s and Nordstrom have large sales throughout the year, so stocking up on gifts at these times will help relieve the financial burden that gift buying can cause. Spreading gift purchases throughout the year will also ensure that money in savings won’t have to be used in peak present-buying months.
PromotionalCodes.com is a coupon savings website that provides thousands of free online coupons and promotional codes from top brand names like Macy’s, Target, Home Depot, Travelocity, Dell and many more. The site is developed by Santa Monica-based SurfMyAds.com, Inc., which also owns and operates Coupons.ca, Codes.co.uk, Codes.de, CouponWinner.com, PromoCodes.com and myShoes.com, a shoe shopping website. For more information, visit SurfMyAds.com.
*Individuals born between 1981 and 2000
Monthly Consumer Survey for April 2013 from the National Retail Federation