This is where your path to financial freedom begins...

Saving for retirement may not seem like a priority when you are young. When college students graduate, they tend to be ready to conquer the world, but are they ready? Not possessing adequate financial knowledge about preparing for retirement after college can lead to a failure to invest in a secure retirement plan. Before starting a job after college, millennials should educate themselves on the barriers to retirement and ways to be financially ready to retire. Learning from Your Retirement Planning Mistakes Most millennials in their 30s have had adequate time to prepare and learn from the mistakes of not investing in their retirement early. Not investing early has caused some millennials in their 30s to have to catch up and recover from not investing in their 20s. Still, it will allow them to have a significant financial cushion in place at retirement age. However, 20% of younger millennials in their 20’s may not have adequate funds for retirement. Younger millennials want to chart their path in life. They may not follow the traditional method of staying in one profession throughout their lifetime and do not seem to value loyalty to a specific employer, nor do they want to commit to one career for the long term. This method of professional employment may not enable them to become “vested” into an organization’s retirement plan or increase their income level consistently due to “job hopping” and constant career changes. See Millennials May not be Retiring Soon—But They are Already Planning for it. Barriers to Retirement One of the most significant barriers preventing millennials from being financially ready to retire is employers shifting from pension plans to defined contribution plans or 401(k)’s. The shift to defined contribution and 401(k) plans compels an individual to remain with a company long enough to become vested in a retirement plan. Ultimately, not contributing to a voluntary retirement plan offered by employers is like throwing money down the proverbial drain and can lead to reduced funding availability in an individual’s retirement years. How much are you going to need for retirement? Steps to Prepare for Retirement To be financially ready to retire, millennials should take the following steps: Educate themselves on the retirement plan offered by their employer (vesting, funds, and fees). Invest a percentage that takes advantage of the employer contribution match. If you are self-employed, seek out a retirement plan contribution option. Evaluate their monthly income and expenses to determine where to find more cost savings to invest in retirement. See my feature in Top 10 Things Every College Grad Should Know About Money Preparing for your retirement in your 20s is the best way to maximize the benefits offered by your employer. Take advantage of the offerings as soon as possible and continue to increase your contributions as your financial situation changes. It’s never too late to invest in yourself.

Have you ever looked at your bank statement and realized that you earned a whopping one dollar in interest from your bank? Or are you charged ATM fees, overdraft fees, or fees for not having $500 in your checking account? These fees might signal that it's time to reevaluate who you bank with. I switched my banking institution when I realized that I was receiving minimal benefits from the funds in my savings account. As a result, I researched other banks and the savings account benefits. Investigating multiple banks allowed me to compare the pluses and minuses of each institution's offerings. Typically, the bank is not giving you money, but you give the bank your money to hold, protect, and ultimately increase it. See How one simple decision could save you $750 a year. Reasons People Look for New Banks There are other reasons you may be considering a new bank: The bank does not align with your financial goals The bank does not have a local branch in your area Customer service and financial guidance is non-existent Finding a bank you are comfortable with and have easy access to via the internet or locally can create a sense of solace when protecting and growing your money. How to Find a Better Bank When looking for a better bank, you should evaluate the fees associated with the account you are trying to open and if the bank can grow with you as your financial situation changes. See my feature in 10 Steps to Finding A Better Bank Following are some recommended questions to ask: Is a direct deposit required? Are there ATM fees, and if so, do you offer ATM rebates monthly? Is a savings account required to have a checking account? Is a minimum balance required to open and maintain the account without fees? How Banks Actually Make Money Did you realize that if you are required to keep a minimum balance of $500 in your account, you may be charged fees that penalize you for not having the available funds? Understanding the minimum balances required and any other benefits the bank offers can create an informed banking relationship. Finding Optional Banking Products The basic checking and savings account is what most consumers start with. However, when looking for a good bank, you should evaluate other investment products available at the bank. For example, does the bank only offer basic checking and savings, or does it offer products like Certificates of Deposit or high-yield savings accounts? Banks that provide expanded options can guide you as your financial situation changes and eliminate the need to switch banks in the future.

Let’s face it: Talking about money isn’t always the easiest thing to do. The hard part is scheduling a time to talk to tackle these sometimes difficult conversations. When you are in a relationship, and your finances are intertwined, having conversations around money can let your partner know your values or money worries. Talking to your significant other about money can help develop your shared goals and identify where your goals diverge. Write Down Your Savings Goals One tactic my spouse and I used when we were dating was to write down our goals individually. We then came together and evaluated where our goals aligned. Next, we planned to budget for our shared goals and our individual goals. Our goals consisted of short-term, medium-term, and long-term goals. Our short-term goals listed things we wanted to achieve in a few short months. Our medium-term goals consisted of things we wanted to accomplish within one to two years. Finally, our long-term goals listed everything we wanted to achieve in the future, say five to ten years. How to Have Family Money Conversations Find Ways to Save When you establish goals, the next step is to find ways to save. Here are some ways to save: Identify skills you have that can make money (cooking, yard work, car repair) Sell items that are sitting in an attic or spare room Pick up a part-time job (grocery delivery, dog walking, babysitting) Cutting back on expenses (eating out, cable, unused subscriptions) See how my husband and I tackled our finances in 9 Secret Habits of People With Credit Scores Above 800 Monitor and Update Your Plan It’s essential to monitor your financial plan. It should not be a set it and forget it plan. You should update your plan as you receive pay increases, have children, or buy a new/used car. If you receive a pay increase, think about saving more in your current situation. Ask yourself, should we increase our retirement contributions or adjust our tax withholdings? If you need to pay for daycare, your savings goal may need to be adjusted to reflect these life events. You may even have to think about setting up a 529 savings plan for your new bundle of joy. Continue the Conversation The conversation should continue as time goes on. A tip could be to set a date on your calendar to review your budget quarterly or semi-annually to ensure that your saving goals are on track. If your budget is not on track, this would be the time to try again next month to help you refocus and save. Focusing on positive money habits as a couple is the key to making sound financial decisions and achieving financial stability.

Have you ever woken up on Monday morning to prepare for work and stood in your closet deciding on what to wear? Did the disorganization of your closet cause disorganization of your mind? This can sometimes start the day and the week off with a negative mindset. Disorganization and clutter can also bleed into other areas of your life. Having an organized closet can lead to other aspects of your life becoming organized as well. Organzing Your Closet Organizing your closet can allow you to start the day and week off with a positive mindset. Sorting your clothes by color, season, and apparel type can make it easier for you to decide what to wear for that day and week. It can also eliminate some of the clothes you don’t wear or will never wear again. This can create space in your closet that wasn’t there before and lead to insight into other things in your life that can be eliminated. My closet is organized by color, clothing type, and season (shirts, dresses, pants, etc.). I have my short-sleeve shirts, long-sleeve shirts, coats, and sweaters in separate areas. Organizing my closet this way makes it easy for me to pick out an item when I’m on the go and helps to eliminate searching for that special shirt or dress that I want to wear. This decreases the time that I would spend standing in my closet figuring out what to wear. See my feature in Spring Cleaning 101 on 21Oak. Decluttering Your Closet As the seasons change, I also declutter my closet. To accomplish this, I turned all my hangers backward in my closet. If a hanger is not turned around after six months, I donate or sell that item. This allows me to provide a service to the local community by giving gently used items to those in need. I also sell some of the things and make a profit. You can find online companies or local businesses that will pay you for your gently used items. Find out how I organized my closet at M.M. Lafleur: How to Organize Your Closet, According to Women Who Really Have Their Lives Together. The Importance of Decluttering Organizing and decluttering your closet can lead to positive influences on other aspects of your life. When decluttering your wardrobe, you can see the benefits received from donating or selling your clothes. There is that intrinsic reward received from providing something of value to others. You can also receive a monetary increase by selling your clothes on various levels. You receive money by selling your clothes; you also save money by decreasing the likelihood of purchasing additional clothing items. For example, when your closet is cluttered, you may not find what you’re looking for and buy another “blue shirt.” Now, I know you look your best in your signature color, but how many of those “blue shirts” do you need? How Organization Can Impact Your Life The bottom line is that the benefits of organizing your closet can start your week off with a positive mindset and lead to cost savings in the future. It can also lead to you organizing your desk, your car, and even your kitchen cupboards. Next, you can tackle organizing your budget. An organized budget can lead to an organized life. Let me know if this tip worked for you, the cost savings you noticed, or if you have other suggestions on how you manage your life.