It’s not easy being a millennial and a lot of us end up living from paycheck to paycheck. But, if you’re feeling unsatisfied with your from-rich-to-poor lifestyle, take a leaf out of Adam Ligman’s book. This young Dad of 2 manages to save $4,000 every month and is stabilizing his future. Take his advice on how you can too.
Saving is A Priority
Adam Ligman is living the American Dream. According to MSN, he has a beautiful home, a wife, Jamie, and 2 cute kids called Aubrie and Keegan. He is still humble though, “I’m fortunate because we’re able to get what we need,” he says. Ligman is 35 and works as an area sales manager at Intuitive Surgical in Pittsburgh.
While the family takes a big vacation every year, they never fail to put $4,000 away every month. The money filters between Ligman’s 401(k), his company stock plan and other investments. The family has their priorities in-check, Adam and his wife are saving for their retirement as well as the kid’s college funds.
Ligman’s salary is largely commission based, so his pay can vary from 5 to 6 figures depending on his performance. He says, “There were a couple times where we had to cut back on our fun stuff for a few months, but there wasn’t any crazy stress or conflict.” In times of lower income, Ligman can always fall back on his emergency fund – which holds 10% of income.
Investing For The Future
When Ligman started to save he would invest solely in his 401(k). But now he says, “As my career has progressed, I’ve had the opportunity to invest more instead of making it by paycheck to paycheck.” He landed his current job in 2015, and his base pay made a jump of 20% with an extra commission on the side.
This move made Ligman get serious about his future, “I rolled over a good chunk of change — six figures — from my former employer’s 401(k) into a brokerage account that my financial adviser manages,” he says. When it comes to the stock market, he calls himself “uneducated” and trusts his financial advisor friend to look after his investments.
Life is About Balance
Ligman reveals some key advice about life. He says, “It’s all about balance and being responsible, planning appropriately and putting the right amount of money away today, but not limiting yourself on enjoying life now, too.”
While many who have money, used tactics like extreme saving and working long 16-hour days, Ligman agrees that you need to enjoy the present too. Having this balance will allow you to enjoy lattes and that infamous avocado toast now – and in the future.
How to Save
Wealth manager and financial advisor, Carlos Dias Jr thinks that millennials need to plan for gaps in their income. He says, “Anyone who receives any sort of commission knows that their income can fluctuate from six figures one year to five figures in the next.”
His second piece of advice is to figure out your retirement number. “Calculate the total balance of your retirement assets. Then research how much you would receive if you placed your nest egg into an annuity — a fixed amount of money paid to you each year for the rest of your life through an insurance company,” he explains.
Third and finally, Dias recommends that you should pay yourself first. “For Adam, he should focus first on his and his wife’s retirement, then consider options like prepaid college plans for the kids, which allow you to lock in today’s college prices for tomorrow,” he says.
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