The Millennial Cheat Sheet To Building Wealth

Financial planning is essential for millennials to navigate the complexities of modern economic challenges and build a secure financial future. With rising living costs, student loan debt, and a competitive job market, it is crucial to adopt effective strategies to manage personal finances.

Millennials face a financial reality dominated by competing priorities and seismic trends outside of their direct control.

They have to contend with rising living costs, realities of student loan debt, and a job market that are all very different from those faced by their parents and grandparents. Millennials need to figure out how to prepare their children for their own education costs, look after their aging parents, and find time to address their own priorities.

What’s more, millennials have lived through multiple financial crises that have shaken up their entire world. No one could have realistically prepared in advance for the 2008 recession, the 2020 pandemic, 2022’s inflation, or 2025’s tariff wars, just to name a few.

This is all to say that if you are a millennial and you’re apprehensive about your finances… you’re in good company. But there are steps you can take today that will help you align your money with your priorities.

Understanding your goals

The first step is to ask what you actually want your money to do.

You don’t have to know the big-picture answers right away. They will come in time. If you’re overwhelmed, start small. Maybe you want to stop stressing every time a surprise bill pops up. Maybe you’re dreaming about a house, or freedom from student loans, or just a vacation.

Write it down. Be specific. Good financial plans start with goals that mean something to you, not what the internet says you should care about.

Short-term financial goals can include building an emergency fund to cover three to six months of expenses, paying off high-interest credit card debt, and saving for travel, a wedding, or a new laptop. Long-term goals might be buying a home, investing for retirement, or planning for kids, healthcare, or even early retirement.

From here, you need to build a basic picture of what’s coming in and going out. Budgeting apps like Mint or You Need A Budget (YNAB) can help. They can categorize your expenses and help you see trends in your personal spending and saving. Set up automatic transfers into savings so you don’t have to think about it. And review things monthly. Your budget should grow with you, not box you in.

A simple framework to start saving is to follow the 50/30/20 rule:

• 50% for needs (rent, bills, groceries)
  
• 30% for wants (dining out, Netflix, that concert ticket)
  
• 20% for savings and debt

First steps of investing

The start of your investing journey doesn’t need to be complicated. You just need to start.

We recommend you start with the easy wins. If your job offers a 401(k), especially one with matching, take it. That’s free money. Outside of work, a Roth IRA is a great way to save in a way that grows tax-free.

Common options include:

• Stocks: Buying shares in companies. Higher risk but potential for high returns.
• Bonds: Lending money to companies or governments. Lower risk but moderate returns.
• Mutual Funds: Pools of stocks, bonds, and other securities. Diversified and professionally managed.
• Real Estate: Investing in property. Provides rental income and potential appreciation.
• Index Funds: Funds that track market indexes. Low cost and diversified.

Start small. Invest regularly. And don’t panic when the market dips, even if it is the start of yet another financial crisis. You need to think in terms of decades. The people who stayed in the market in 2008 are, by and large, doing quite well in 2025! It’s far easier said than done, but don’t lose your cool.

Tackle debt without shame

Debt is real. So is the pressure to ignore it. But small moves now can save you thousands later.

With student loans, look into income-driven repayment plans or refinancing if your rate is high. If you work in public service, see if you qualify for forgiveness programs.

With credit cards, focus on the highest interest debt first. Balance transfers can buy time if you’re disciplined. Automate your minimums so you never miss a payment.

You don’t have to be debt-free tomorrow. You just need a plan that moves you forward.

No time like the present

It’s easy to think of retirement as “later you” problems. But “later you” will love that you started early.

Compound interest works wonders. Saving even a little now can mean way more than playing catch-up later in life. Time is your best asset.

Set up:

• A 401(k) if your employer offers it, and contribute enough to get the match
  
• A Roth IRA if you qualify
• Automatic monthly contributions so you don’t have to remember

Check in once a year. Adjust as needed. Be consistent!

Your financial plan will change, because your life will change. There is no such thing as a perfect plan you can set and forget. Instead, think about direction and momentum. Pick one thing and start. The rest will follow.

That said, we understand that this is a complicated and at times emotional aspect of anyone’s life, regardless of their age. If you have questions or want to discuss any of these subjects in greater depth, our door is always open.