While it sometimes may seem confusing, millennials have been defined as those born between 1981-1996. They're all well into adulthood now, but it hasn't been an easy-breezy ride. If you fit into this demographic you probably have a lot of ideas about what life should look like today, so let me ask you this? Do you have a bajillion dollars saved up? Okay, that's a silly question. But it's not far from the absurdity released not too long ago by Bank of America.
Bank of America put it in its 2018 Winter report: a survey shows that 16 percent of millennials (or roughly one in six 23 to 37-year-olds) have 100,000 dollars or more saved up. As soon as CNBC tweeted the fact, Millennials across the Internet definitively lost their shit.
For an entire generation of people who are collectively struggling, the concept of having any savings is almost impossible, let alone $100,000.
...Because this is more plausible since so many of us grew up playing The Sims.
I absolutely believe more than 1 in 6 millennials should have at least 100,000 dollars or more saved up if they ever want to achieve financial independence and not work at a job they hate for the rest of their lives.
Dogen also said:
Based on my 401(k) savings by age guide, you should have the following saved in your pre-tax retirement account by age:
-100,000 – 300,000 dollars by age 30
-250,000 – 1,000,000 dollars by age 40
-600,000 – 2,250,000 dollars by age 50
-1,000,000 – 5,000,000 dollars by age 60.
Dogen told Bored Panda:
If you want to retire before 60, you need to save even more in online brokerage account and other non-tax advantageous accounts. You can’t withdraw funds from your 401(k) or IRA before 59.5 without a 10% penalty.
Dogen also offers a guide for "after tax investment amounts by age."
Dogen also advises that your mindset matters, he said:
You have to get in the right money mindset. If you are already telling yourself it is impossible to save money, of course, you’re not going to do everything possible to save money. My #1 piece of advice is: if the amount of money you’re saving each month doesn’t hurt, you’re not saving enough.
Dogen also advised what to do next:
After you make saving money painful, then you’ve got to take on side hustles to make even more money. Freelancing online, driving a car, assembling furniture, tutoring, mowing lawns are examples of some common side hustles.
The Financial Samurai encourages you, that you can adapt:
The absolute bare minimum is to save at least 20 percent of your income after tax each month. If 20 percent feels like a lot, don’t worry. You will get used to living with 80 percent of your income or working other jobs to boost your income.
If 20 percent doesn’t feel like enough, it’s imperative you keep ratcheting up your savings rate until you need to make lifestyle changes. Your ultimate goal is to try and achieve a 50 percent savings rate after taxes. Once you get there, every year you work will equal one year of living expenses.