10 money resolutions for millennial couples
Jan 2, 2024
A new year brings new goals. A journey of a thousand miles begins with one step… and you’ll get there faster if you know where you’re heading.
Let's look at 10 money resolutions for millennial couples that can help boost your household wealth.
10 money resolutions for millennial couples
1) Set a recurring money date.
Create a recurring calendar invite with your partner, however frequent you want, and talk everything you can about money. Topics ideas include upcoming expenses, what you recently spent money on, where you may have gone over budget, your financial goals, and more. Make that money date right away.
While you're delving into everything money, don't forget to have fun too and even bring out your competitive side. Some couples make no-spending challenges or have saving goal competitions with each other. The winner can choose a date night location or small reward.
2) Come up with net worth targets.
In simple terms, net worth is what you own minus what you owe. It’s a great indicator of your financial health. Each year, set a new target amount you want your net worth to reach. Having goals helps keep you motivated throughout the year to build assets and grow your wealth.
There’s no right or wrong way to create a net worth goal that you want to reach. Some factors you can take into consideration are your age and work experience.
According to Financial Samurai, here is a net worth target guide to shoot for based on a multiple of income.
3) Develop a detailed budget to track spending and help achieve financial goals.
Tracking your spending is important so you know where your money is going. You might have a money leak that needs plugging. Or you might be paying too much for something you wouldn’t have known without tracking. The more you track your spending, the more you can optimize your spending and saving.
Once you’ve got tracking down, focus on saving and investing for your biggest financial goals. For many modern couples, the three largest expenses to prepare for are saving for a house, their children's education, and retirement. Once a plan is in place for these three things, everything else can mostly be covered with cash flow.
Finally, once you know what you’re spending and what you need for your goals, set some budgeting and saving targets for each item. Set a date for which to achieve those goals and work backwards by figuring out how much you need to save and invest each month or year.
You can easily set individual saving goals with Plenty.
4) Get serious about paying down debt.
Debt is a part of everyday life. It can be a useful tool if managed well or an anchor that can weigh millennial couples down from achieving financial independence if left to its own devices.
Approach your debt with intention and focus. Consider using the debt avalanche method, which pays off the highest interest rate debt first. For example, eliminating expensive credit card debt with a 20% interest rate first before paying down a 5% student loan.
Another debt payoff method is the debt snowball, which pays off the smallest debt amount first to help you gain momentum.
5) Seek to max out tax-advantaged retirement accounts.
Begin contributing to retirement accounts like 401(k)s or IRAs if you haven’t already started. Time is still on your side to let compound growth work its magic.
The closer millennial couples can get to each maxing out their tax-advantaged retirement accounts, the more secure their potential retirements can be.
If you have automatic contributions setup based on a flat dollar amount, make sure to update them higher to meet the IRS’ new contribution amounts if you can save up to the max. For 2024, the maximum employee 401(k) employee contribution limit is $23,000 and $7,000 for the traditional IRA.
6) Review insurance needs as situations change.
The five main types of insurance coverage for millennial couples include: car, health, home, life, and disability coverage. Each year, it’s great practice to contact your existing insurance providers and review what each policy entails. The last thing you want is for something to happen and not get covered for what you thought would get covered.
For millennial couples around age 30 who are considering children and homeownership, this may be the best time to lock in an affordable 30-year term life insurance policy. Life insurance still tends to be relatively affordable at age 30. Meanwhile, life can get much more complicated after 30 with potentially the added responsibilities of parenthood, taking care of your own aging parents, and work.
7) Start investing in a taxable brokerage account.
After contributing the most you can to your tax-advantaged retirement accounts, it's time to focus on investing in a taxable brokerage account. It is your taxable portfolio that can generate usable passive investment income to help pay for living expenses before a traditional retirement age.
Unlike retirement accounts, taxable brokerage accounts have no contribution limits. As your household income grows, funnel as much money as possible into these accounts.
8) Find ways to boost income.
Millennial couples can only save so much toward financial freedom. Look for ways to increase your income through promotion opportunities, entrepreneurship, or side hustles. The more income sources you have, the more secure you will be.
Since your greatest income source will likely be your day job, consider building a strong network of supporters at work who will vouch for you when it's time to get promoted and paid.
9) Start an emergency fund.
If you don't have an emergency fund, start one to protect your household against unexpected financial surprises. Ideally, aim to come up with 3-6 months' worth of living expenses.
If you’re unsure how much to set aside, take some time to sit down and carefully add up all the money you’ve spent in the last three-to-six months. That total amount can be your emergency fund saving goal, give or take.
This exercise can help you come up with a realistic expectation of how much money you’d want to be able to access quickly if you unexpectedly lost your job or need to pay for something like new tires if you got a flat.
Having a large-enough emergency fund will help reduce anxiety and build financial confidence.
10) Consolidate your credit cards.
The millennial couples we track have six or more credit cards between the two of them. As a result, time can get wasted splitting individual transactions when it’s easier to bite the bullet and get a joint card together with the best rewards and lowest rate.
Debt is also simpler to track and tackle with fewer credit cards. The more aware you are of your spending habits, the more likely you are to avoid splurges and keep your financial goals on course.
If you love the signup points, be disciplined about putting subscriptions on a card you plan to maintain. If not, you can create a mess to clean up down the road.
Millennial couples make SMART goals
As you think about your money resolutions, be sure to make SMART goals. SMART is an acronym that stands for:
S - Specific
M - Measurable
A - Achievable
R - Relevant
T - Time-bound
Let Plenty help you achieve your money resolutions today. Plenty empowers modern couples to seamlessly manage their finances together.
In an age where dual-income households are the norm and financial choices are increasingly collaborative, we created the first all-in-one money management platform tailored specifically for today's partners.
Sign up for an account with Plenty today.
- Team Plenty
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