According to a Business Insider article, 60% of millennials who make over $100K say they live paycheck to paycheck. The primary reason is that they want to spend money here and now, maintaining an expensive lifestyle and struggling to balance their spending and saving habits.
If you are a millennial earning over $100K, here are some things to keep in mind:
- Remember to save money. You have time on your side (longer time to retirement) so take advantage of 401K savings if available to you.
- Don’t do stupid stuff with your money. You have time to recover, but realize that poor financial choices will cost you future earnings that can really add up.
- Stop eating out for breakfast – dinner. When I meet with millennials who are HENRY’s (“high earners, not rich yet”), I ask for a report of where their money is going. Eating out is the culprit more times than not.
In the end, $100K is a lot of money for a single person. Stop having no regard for your money. View it as a limited commodity and consider investing it with the goal of making a consistent return. Also realize that the job you have now can go away and the last place you want to end up is your parents couch.
What are your thoughts? Do you agree or disagree?