Millennials are a group different from other generations and most shun the conventional saving route that their parents took. Part of the blame is on the financially turbulent times they grew up in and the consequent job struggles that they face.

With that being said, are millennials preparing themselves for the future and their retirement? According to one study by Wells Fargo on in 2014, only 50% of the millenials have started to save for their retirement. The majority has student loan debt and lives from paycheck to paycheck. However, millennials need to get smarter about their finances. Here are some tips that can help you do just that:

Know Yourself

It’s a common question people ask, but one that is really important for you to ask yourself, “where do you see yourself in 5-10 years?” If you don’t have a clue, chances are, you will be just as blank about your finances as well. When you have a direction, it becomes your compass to use and invest your money wisely. Even a general plan about what you want to accomplish in the coming years will help you estimate your savings goal.

Plan Your Budget

Savings help you create an emergency fund in case of an accident or any matter that requires a significant sum of money. So it’s important that you have an idea of your monthly expenses and how much your lifestyle costs. Budgeting will help you give a clear picture of where your cash is going and what you need to do in order to save for your goals. Not having a monthly budget can spiral your finances out of control, and as you age, you realize that not having a monthly budget was foolish.

Pay Down Your Debt

If you have credit card debt, start with paying off the one with the highest interest rate first. Millennials fresh out of college with no financial background find it hard to adjust in the real world when it comes to taxes, investments, balancing a checkbook, and the like. Whether or not you studied finance, it is what you have to deal with; so start with building your knowledgebase right from the start. The more and the faster you pay back your debt, the more money you will have left to put down towards savings.

Start Building Assets

It may not make sense to advise millennials to start building their assets when they have debts to pay off, but the earlier you start or even plan to build assets, the better it is. Start exploring your options of investing or purchasing cheap property so that you can get a head start on building your funds and find ways to contribute your cash towards other things.