BUFFALO, N.Y. (WKBW) — Jeff Boron of the Financial Guys in Willamsville says he sees more millennials focusing on saving. Not only for retirement, but in their savings accounts as well. Bank of America reported 1 in 6 Millennials have $100,000 saved right now.
Here are some tips from Boron on how much you should be saving at every age.
-Once you have a stable job and have your student loan payments squared away, Boron suggests saving $300 a month .
"You put that away and you save that for 40 years at an 8% return, you will have well over a million dollars saved up by the time you are 65," Boron said.
-Boron says it's a good idea to have 100% of your yearly income saved up in total from all savings accounts (401k, savings, ROTH IRA)
-He also suggests that once your student loan debt is paid off, take the money you were paying and add it to your savings account
"Pay yourself first, we all pay our cell phone bill, we all pay our rent, we all pay our car payment, have that YOU payment which is a retirement or savings plan," Boron said.
-Have 3xs your salary in savings
-"Every time you get a salary increase, you change jobs, get a big promotion take a piece of that incremental money that you were not living on and put it towards savings or put it towards your 401k," Boron said.
-Boron says if your kids are headed off to college and it's important to look at where your savings are and how much you can afford to pay for college.
"You're at a peak of earnings... you want to start stock piling your money away," Boron said.
To stay on track with the savings Boron suggests systematically taking out a set number each month for both your savings account and your retirement and just forget about it. He also suggests writing down your expenses for the month and cutting down where you can.