This article by Mitch Tuchman on Forbes.com highlights that millennials aren’t focused on retirement savings, and I think I know why. Retirement is something for grandpa, not for a 20-something person just setting sail on the great voyage of life! It’s hard to get excited about quitting when you aren’t even sure you have started yet.
Forget about retirement and think instead about freedom. Create two “freedom funds.” The first is for your long-term freedom and the cool thing is that you can use your employer’s “retirement” plan to save for your “freedom.” They might even chip in a few bucks every year to help you get away!
The second is your short-term freedom fund. Freedom to say goodbye to a bad boss, a bad situation, or an amazing (but less lucrative) gig. Freedom to spend 6 months traveling if the travel bug bites. Freedom to pay for the car repair, hospital visit, or other misadventure that must be fixed. Freedom from debt, high interest credit card rescues, and requests to mom and dad for help.
Money in the bank gives you freedom, expands opportunities, and provides peace-of-mind. It is a “must do” on the task list of life as an adult. So is investing to grow that wealth. Investing can be scary, I know. I avoided it like the plague for most of twenties and have lived to regret that deeply. Investing is also essential for growing your freedom fund and building your wealth. There are a lot of resources (uh-hum, chapter 8 of my book) to help you along the way so find some, ask someone for help, and get started.
You may not want to be rich, to ever retire, or to chase wealth, but I know you want to feel safe, have the ability to walk away from a soul-sucking job, and handle life’s rainy days. Saving provides the safety net and investing helps the net get bigger over time. Start today and I promise you won’t be sorry.
To your financial success,
