How Gen X Can Avoid Financial Trouble

Is Gen X in financial trouble?

Fifteen years ago, "Gen X" was a media catchphrase. You'll recall the media painted Gen X as a generally apathetic bunch. And quite a few were prone to wearing grungy clothes in the manner of Kurt Cobain.

Now the media -- particularly the financial media -- have turned their attention to the waves of Baby Boomers. (So many Boomers. So little time to sell life insurance and adult diapers!)

So what's happened to Gen X, the children of the Baby Boomers? The youngest are just crossing 30, and the oldest are in their mid-40s. What are their financial issues?

Here are three specific to Gen X.

1. Relax... Go Do It.

Just about now, Gen X is waking up to the fact that they've relaxed and not saved for the future. If you're a part of Gen X, you're heading into years that are typically the highest wage-earning. Make sure you set up a long-term savings plan now.

Time is still on your side. But you'll have to save more. You may be forced to rely on higher returns to live your current lifestyle (which could be risky) if you continue to relax and don't do it.

2. Reality Bites.

You've heard it: Social Security is likely to be long gone by the time Gen X would like to collect. So much for paying into it all these years! As with No. 1, Gen X is on its own when it comes to long-term financial security.