If you were born between 1981 and 1996, you’re considered part of the millennial generation, according to the Pew Research Center. Why does this matter? Because anyone born during this period will be in their 30s or 40s by the time January 2026 comes around.
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And that means you might have a stable job and some assets built up, but there’s still plenty to be done to safeguard your money and build toward retirement. Dealing with money might not be the most exciting part of your daily routine, but it’s vital to your future.
Here are the top money habits you as a millennial ought to adopt heading into the new year, according to financial experts.
Many millennials are in their prime earning years, but with pay increases often comes lifestyle inflation. Try to avoid the temptation of spending more as you earn more. Instead, put more money toward your savings or investments.
“Automatically directing even 30% to 50% of any income increase toward savings or investments lets you grow wealth without feeling deprived,” said Michael Unger, vice president of investments and planning at Coral Gables Trust. “You’ll still enjoy some of your raise, but you will also accelerate progress toward major goals like homeownership, retirement or building a safety net.”
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This goes for an end-of-the-year bonus, too.
According to the U.S. Bureau of Labor Statistics (BLS), the average year-end bonus is between 2.4% (civilian) and 2.9% (private-sector) of an individual’s total annual compensation. That means someone earning $80,000 could get $1,920 to $2,320 extra just in time for the new year. That’s a decent amount to bolster your savings or investments.
Sometimes, it doesn’t matter how much money you’re making or what kind of insurance policy you have. Life happens and so do unexpected expenses. While it might not be fun, your future self will thank you for creating an emergency fund — even a small one.
“If people are buried in debt, this will cause a ripple effect into a broader financial crisis,” said Peter Reagan, financial market strategist at Birch Gold Group. “By building a cushion now, millennials can protect themselves from unexpected expenses while also helping avoid being part of an economy-wide crunch.”
It’s easy to get caught up in the hype of new or alternative investments, but there’s still something to be said for long-term planning and traditional investing.