The Financial Life of X & Y

Here's a good article about the financial future of Gen X and Y individuals. Just like generations before us there are trends coming that we will need to prepare for. The article gives a few predictions, that if they are found to be true could cause for different preparations for our future.

- College grads have over $20k of debt leaving school
- Pensions are on their way out 401(k)s and Roth 401(k)s are in to supplement Social Security
- People will continue to educate themselves throughout their lives
- Computers will continue to make a huge impact on our lives

These are a lot of predictions, however all seem very likely. To prepare for there there are some things I try to keep in mind when preparing for my financial future.

- Always look ahead and never stop your education. This can double your lifetime earnings or more, which is no small change.
- Invest, not only that learn what you're investing. Why does a bond differ from a stock, what is the difference between an IRA and Roth IRA and how it can help? Find your investment profile.
- Save money, ie pay yourself. With that money make sure you invest as many banks pay little interest. If you think about it with a 4% annual inflation rate and a 2% interest rate, you lose money over the course of a year.

These are just some of my suggestions that I've tried to follow. What about you? What financial choices have you made for your future? Blow all your money of candies and baseball cards? I've tried that and it doesn't work.

[Photo: Geff Rossi]

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Blogger Kristen said...

Yet you still spend all your money on candies and baseball cards, some advice! haha

23 May, 2007 23:46  

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