You’ve already taken the recommended steps to start saving early. You make regular contributions to your employer-sponsored 401 plan, and they’re big enough to get the company’s generous match.
Young people should first “earn the right to invest,” he says. That means you must get a steady job with a consistent income first. Next up is funding your emergency savings in case life happens, which it will. While maxing out a 401 account may not be feasible for everyone – only 18% of millennials consistently maxed out their retirement – start off small and work your way up, says Erin Lowry, author of “Broke Millennial: Stop Scraping By and Get Your Financial Life Together.”
To make investing even more effortless, these platforms allow you to automatically transfer funds from your savings or checking account to your investing account each month. They don’t require a minimum balance, but may charge an annual fee. Betterment charges 0.25%.“You can still talk to people on the phone,” Moorhouse says. “It’s an accessible and affordable way to start investing.”Don’t get intimidated.