Gen X tends to fly under the radar when it comes to talking about finances. However, the generation has been reported to have little to no savings — for retirement or otherwise.
GoBankingRates wanted to hear from Gen Xers about why some people their age have no savings and also from experts about what can be done to turn things around.
Here’s what they had to say about what Gen X can do to reverse their fortunes.
Gen Xers Explain
Reddit user Dunkelregen shared some insights about the lack of salary increases and cost of living.
“For 20 years, I kept getting small raises (when I was lucky), and all too often got “lateral movements” (read: we’re not going to pay you any more [sic], but here are new responsibilities) into management or into what should have been a much better paying position. How are you supposed to save money when you spend 10 years with a nearly unchanged salary?
And at the same time, companies have been moving from a purchase-based model to subscription-based everything. And when I graduated college, we weren’t required to have mobile phones or home computers, and all the little things that go along with staying online to be able to function in society. But all in all, this is not a generational thing. I used to work fairly closely with CEOs that were close to me in age. I was the one fixing their system, configuring their new iPhone and handing them the mic at the all-company meeting. They had no problems with saving. And I knew baby boomer IT guys that couldn’t afford to retire.”
Reddit user Lobotomist’s talked about long-term illness’s impact on savings and lack of future work opportunities.
“I was saving. But then I got sick and had to spend all just to survive. Now I really don’t know what I will do for retirement. But that is not the worst. Ageism is real.”
Financial Experts Weigh In
Julie Beckham, Financial Education Officer at Rockland Trust, said that in today’s financial climate, it’s more important than ever to build healthy savings habits. She noted it’s never too late to start.
Start and Be Consistent
“Saving is like any habit, in that starting can be the hardest part and consistency is key,” Beckham said. “The first step is understanding how much money you have coming in and deciding how much you’re comfortable with regularly stowing away in a savings account. How much you should be saving ultimately depends on your personal goals, financial situation and priorities.”
Pay Yourself First
Beckham said she agreed with common advice about making it a priority to pay yourself first and start with whatever is comfortable for you and your budget. Over time, she said, you’ll find that regularly setting aside even small amounts can turn into big sums to help you reach your goals.
Use Automation
“To make sure you don’t forget to set this money aside, I suggest automating the process and having a portion of your check directly deposited into an existing or new savings account,” said Beckham, who also said that creating separate savings accounts meant for specific goals or purposes.
Avoid Psychological Traps
Alex Schlesinger, Founder and CEO at Active Mutual, said sometimes psychological traps can prevent wealth building. Those might include waiting until you feel lucky, fearing stock volatility or having a mindset that you’ll start saving money at some later date.
Avoid Get-Rich-Quick Schemes
“Some Gen Xers fall into get-rich-quick schemes, expecting easy returns,” Schlesinger said. “But fast and sure rarely go together, and wise planning beats quick fixes.”
