By Sarah Stewart Legal Group

Definitions of Millennials vary.  But, ultimately, when someone refers to a Millennial, they mean someone in their 20s or 30s.  Millennials tend to focus on their day-to-day financial needs and forget to focus on their future and retirement.

If you begin following these 10 tips now, you can have a financially free future, and yes, even retire one day.

(1) Start Saving Today

An interesting thing about investing money is money compounds.  That means the longer the money is invested, the more money it can make for you.

For example, if a 25 year old wants to have $1 million in retirement, they can start today and invest $880.21 per month with a 5% return.  If a 35 year old wants to retire with $1 million, they have to invest $1,679.23 each month with a 5% return.  For a 45 year old, the monthly investment would have to be $3,741.27 on a 5% return.

Find a great investment program that works for you.  Look for high returns and low fees.  And, start investing for your future!

(2) Be Consistent

Figure out how much you can save for retirement each month.  Then, do it!  Put your retirement account drafts on automatic withdrawal.  Try to increase the amount you’re saving each year until you reach the maximum amount allowed by the IRS.

(3) Have an Emergency Fund

Something will always come up.  The furnace will break.  The hot water heater will blow out.  The car will need new tires.

Plan for your emergencies now!  Save a little each month until you save 6 to 9 months of living expenses in a savings account.  This fund will be invaluable to you when you need it!

(4) Live Within Your Means

Buy what you need and what you can afford. Don’t try to keep up with the Joneses. It will pay off in the long run.

(5) Balance

Realize that you need to treat yourself sometimes and you need to save others.  The secret is balancing the two.  Find your balance.

(6) Don’t Forget Insurance

Term life insurance policies for Millennials are cheap.  Buy them while you’re young to protect your family when you’re older.

Also, remember that we’re not immortal.  Look into disability policies.  If you get hurt, they can help you pay the bills while you recover.

(7) Buy Low Sell High

When investing in stocks be sure to do your research on the best stocks to invest in.  But, once you know, remember the rule.  Always buy your stocks when they’re low and sell them when they’re high for the best return on investment.

(8) Grow Your Investments While You Grow

When you get that raise or promotion, devote a percentage of it to your investments.  That way, you can enjoy your hard work now, with the percentage you enjoy from your raise today, and in the future, with the percentage you devote to your investments.

(9) Pay Off Debts

Let’s say you pay off your car and get an extra $200 in your pocket each month.  Instead of using that money on furniture or a new toy, use that extra money to pay off the next lowest debt.  Continue this process until you’re debt free and imagine the lifestyle you can live!

(10) Determine Your Savings Goal

If we want to achieve a goal, we have to know what that goal is.  We can’t get where we’re going if we don’t know where we’re going.

Work with an advisor to calculate your retirement needs based on the lifestyle you hope to live.  Make a plan to save for that goal, and follow it.