It’s a new year, but Millennial financial advice for 2016 still holds true. Here we summarize some of the best Millennial financial advice offered in case you missed it. We want you to attain financial security, happiness, and the ability to direct your life in ways you see fit.
The word Millennial is tossed around as if it has some pre-determined meaning from on high. And if you are a Millennial, it probably irks you. So who is this generation exactly?
A Millennial and Stereotypes of the Millennial Generation
The ‘typical’ Millennial:
- Works for a venture-backed start-up.
- Likely to irritate fellow commuters by gliding all over the sidewalk on a hover board.
- Has challenges keeping a man bun securely in place.
- Sometimes stares at own reflection captured on Snapchat.
- Wonders how to integrate a handlebar mustache and a sleeve tattoo into his aesthetic.
- Expresses thoughts by using gifs or emojis.
- Starts a podcast about favorite podcasts.
THIS IS NOT A MILLENNIAL! (Is it??)
This is a stereotype, but this blog takes a deeper look at individuals who make up this generation.
How Millennials Can Build Their Credit Scores
Millennials have an average credit score of 625, which is the lowest of any generation, and almost 50 points below the national average.
This doesn’t necessarily mean millennials don’t pay their bills, but rather they need a bit of Millennial financial advice to take the steps needed to build a credit record. This blog will show you how. Credit can affect student loans, mortgages, apartment rentals, insurance, employment, credit cards, and more.
Three Financial Concepts You Didn’t Learn in School
As we look back at our schooling, there are all types of lessons we didn’t learn, especially financial lessons.
This blog looks at three “unlearned” lessons. The first, explained below, is the power of compound interest.
At 19 years of age, Jenny invested $2,000 every year for eight years. She chose investments that returned 12 percent interest. At 26, she stopped investing. She invested a total of $16,000.
At 27 years of age, Tom invested $2,000 every year until he turned 65. He chose investments that also returned 12 percent interest. Tom, however, invested 23 more years than Jenny. He invested a total of $78,000 over 39 years.
When they both turned 65, who had the better investment?
Tom’s total was $1,532,166. Jenny’s total was $2,288,996. She invested less money but started earlier.
Besides compound interest, this blog also contains equally compelling Millennial financial advice about credit scores and retirement.
Five Reasons Why Millennials Should Care About Disability Insurance
Ah, to be a millennial. So young, so invincible … until you’re not. You may have health insurance, which will protect you against high hospital fees, but if you lose your ability to work and earn an income, how are you going to eat and pay rent when you can’t work for a period of time?
Learn more about this vital insurance here.
Four Things You Need to Know About Money in Your 30s
If you spent your 20’s racking up debt, your approach to money in your 30’s will likely focus on a debt reduction strategy.
With the snowball plan.
It’s better to pay off your smallest debts first, according to research from Northwestern University. This approach is often advocated by financial advisers as the “snowball plan.”
Learn more here.
The above blogs are great, but the best of all is our Millennial Financial Advice eBook.
It is a compendium of terrific Millennial financial advice. Happy reading and have a prosperous 2017!