Did you know the oldest of the millennial generation are almost turning 40? The largest cohort to enter the job force since Baby Boomers are now heading into middle age and it’s definitely time for millennials to consider not only the ways to make money but also save it. As the workforce is poised to change again, how can millennials reevaluate their money making, and money saving, strategies?
The Gig Economy
Is it really true that millennials are driving the gig economy? More working professionals are opting for outside the box employment including freelancing, contracting, and entrepreneurship. A gig economy is a great place for millennials to earn money without having to commit to a single employer.
That isn’t to stay that every millennial is working a gig rather than a full-time job with benefits. But for those that do, it’s even more important to save since employer 401(k)s aren’t a part of the package.
In this case, millennials are encouraged to open IRAs to help them save for retirement. And don’t think that IRAs are even a one size fits all solution. Depending on your financial situation, there is a number that could be worth it for you.
Each will have different benefits, so it’s worth looking into a variety of solutions before making the right choice.
The best thing any millennial can do is speak with a trained financial advisor to help steer you in the right direction for your financial future.
A Side Hustle
Okay, so we’ve already discussed the gig economy, but another big solution for millennials to earn little extra money is the side hustle. Some millennials make an entire career out of a series of different side hustles.
Even if you’re working a full-time job, you can use your spare time to make a little extra. Maybe you want to write eBooks. Maybe you can teach an online course. Or maybe you like to make crafts and sell them on Etsy. Millennials are monetizing their hobbies, and that helps them save.
A side hustle can be a lot of work at the start, but many also generate passive income streams so you can let your money work for you.
Finally, many millennials are using investments as a way to save for the future or just a rainy day. There are a lot of options today for anyone who wants to get into the stock market.
Apps like Robin Hood or Acorn will help you manage your money and trading online without all on your own. They can be customized to work well with your particular goals and needs. Or you can go old-school and work with a broker or buy and sell stocks on your own, whatever gives you the most satisfaction for your overall experience.
Saving money for a rainy day should be something you think about early and often. The more you can sock away for the future, the better. Even if you’re a complete beginner, starting now will be the key to your financial stability.