Millennials are in a bind, squeezed by changing workplace opportunities and massive student debts. To get on the right path to build their wealth, they should follow these four steps.

Much has been written about the shaky financial health of Millennials, most notably that they are lagging behind other generations in personal net worth and falling behind in their retirement savings. This is due less to the popular belief of excessive spending and an alleged aversion for saving money, and more to the unfortunate timing of entering a workforce severely impacted by the crisis of the 2000s.

Nevertheless, regardless of their current financial status, with proper planning, Millennials have plenty of time to get back on track. The key is to create flexibility by saving, so it does not result in penalty or taxes if funds need to be withdrawn before retirement. In doing so, individuals can hopefully avoid a costly “debt cycle,” which often occurs due to unexpected expenses.

The Research: Millennials are Lagging Behind, But It Is Not All Their Fault
Unfortunately for Millennials — generally considered those born from 1981-1996 — many entered the workforce during significant financial upheaval, including the dot-com bubble and the Great Recession. That made it difficult to find quality employment with solid compensation and benefits — including retirement plans. Coupled with the fact they are less likely to afford or buy a home and are burdened by substantial student loans, this has resulted in them lagging behind other generations in regard to both building wealth and saving for retirement.

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