Financial Planners Shares Tips For Millenials To Become Rich
Douglas A. Boneparth, CFP and president of Bone Fide Wealth, shared key steps millennials can take every 5 years to become rich, according to Business Insider.
Boneparth offers financial planning and advice to high-net-worth millennials. "I know many people who make less than $50,000 but consider themselves wealthy because of their health, family, and friends," he said. Furthermore, he emphasized that you're never too young to start building wealth.
He started with age 25 stating that the goal at this age should be to get goal-oriented. "Build a strong foundation for savings by mastering cash flow. This means diving into the data," Boneparth said. "What did you spend your money on over the past six to 12 months? What can you consistently save? Define a comfortable and realistic lifestyle."
Age 30, continue to build your foundation. "If you haven't built your foundation at this point, don't delay," Boneparth said. "You should focus on satisfying your short-term goals such as cash reserves, making the standard payment amounts on your student loans, and/or saving for just about anything that you're looking to accomplish in the next four years or less (i.e. a house)."
Age 35, focus on the long term vision. "Start to make greater and greater contributions towards retirement and long-term goals if you've tackled short-term goals or have greater capacity to save," Boneparth said. He also added that you should automate all savings. "Out of sight out of mind. It makes increasing savings that much easier."
Age 40, revisit your goals. "Return to fundamentals and analyze cash flow again," Boneparth said. "Continue to be disciplined in spending and savings. See if your goals shifted at all and if any changes need to be made."
Financial planner shares his tips on what millennials should do every 5 years to become rich.