Millennials are constantly bombarded with financial advice. Thanks to the sheer abundance of it, it’s difficult to sort through the rubbish and latch onto the real gems.
Get credit card X right now! It has a low interest rate! – Your friend Mikey
No, we are not talking about this type of advice. Just. the. worst!
We’re here to set the record straight. The ten money tips for millennials discussed below will help you improve and maintain your financial health.
Money Tips for Millennials: Start Saving Now
There’s no better time to start saving than now.
Even setting aside a small amount of money each month is better than nothing. Luckily, a recent report from Fidelity shows that the average millennial is already saving around 7.5% of their income.
For a more in-depth discussion on how to up your savings game, check out Jacob Merkley’s great article on creating a savings plan.
Keep it up!
Money Tips for Millennials: Track Income and Expenses
Tracking your income and expenses is the best way to create an effective budget and eliminate overspending.
According to Lab42, almost 90% of millennials have a monthly budget, although only around 20% stick to it.
A great money tip for millennials is to use an online money management tool like Mint.com to make setting and sticking to a budget plan easier.
Money Tips for Millennials: Build Credit
No, don’t get more credit cards! In fact, you only need one credit card with a low limit. Start shredding!
The key is to eliminate excessive consumer debt then use a low-interest credit card carefully, making on-time payments above the minimum amount.
Money Tips for Millennials: Pay Off Student Loan Debt
Start working towards paying off your student loan debt as soon as possible.
A lot of millennials can even qualify for better student loan debt payment programs.
Money Tips for Millennials: Build an Emergency Fund
A recent study from Bank Rate shows that at least 50% of millennials don’t have a penny in an emergency fund.
Yet an emergency fund is beyond important.
An emergency fund with enough money to cover three months of expenses is one of the most important money tips for millennials to put into practice.
Money Tips for Millennials: Start Investing in Retirement
There’s absolutely no reason why you shouldn’t start to invest in your retirement as soon as possible.
This is especially true if your company offers a 401(k) match program.
And with so-called robo-advisors, it’s easier now than ever to invest in your retirement. When I first heard the term ‘robo-advisor’ I had visions of something way cooler than automatic investing strategies.
Even if it’s $20 a month, get started!
Money Tips for Millennials: Live Below Your Means
Never live above (or even at) your means.
You should always live below your means to play it safe and avoid overspending. As you earn more and move up in your career, be sure to watch out for and avoid lifestyle inflation.
This was actually the best advice I’ve ever received. Credit to the always amazing Porter Stansberry for this one.
Money Tips for Millennials: Increase Your Value
Don’t get complacent. One of the best ways to improve your finances and grow your income is to increase your value as an employee.
Take classes, look into training programs, and pursue more education to be at the top of the list for promotions and raises.
Money Tips for Millennials: Generate Side Income
One of the most overlooked money tips for millennials is to generate side income.
Do What You Need to Do
Millennials are in a different position than any other generation in history. Despite being better educated, the U.S. Census Bureau states millennials make $4,000 less than the same age group did in 2000.
That’s why one of the best money tips for millennials is to disregard traditional financial advice when needed.
There’s nothing wrong with picking up side gigs, trying out freelancing, living with roommates, or taking public transportation.
Shred those cards, live below your means, save some money, and have fun!