Future-Proof Your Finances: Essential Money Moves for Millennials

Hey Millennials!

Welcome to the Millennial Financial Times tribe! We’re excited to have you with us. "Stay Informed, Stay Ahead: Financial Updates for Millennials." Every Tuesday at 6 am EST. Let’s get started!

What we have for you today!

• Question of the Week

• Answers to Last Week’s Question

• Five Key Practical Tips from Ray Dalio

• Top Stories of the Week with Our Opinions

• Stories We’re Following

• Political Corner* NEW

• Book of the Week

• Quote of the Week

What financial goal do you hope to achieve in the next 12 months, and what steps are you taking to reach it?

How to Participate: Reply to this email with your answer, and we'll feature some of the best responses in next week's newsletter!

Last week’s question of the week was: What is the most valuable financial lesson you've learned so far, and how did it change your money management approach?

Here are three of the answers we received:

Samantha, 28: "The most valuable lesson I’ve learned is to pay myself first. For years, I would pay all my bills and then save whatever was left over, which often wasn’t much. Now, I automate a portion of my paycheck to go straight into savings and investments before I even think about spending. It’s made a huge difference in how quickly I’ve built my emergency fund and started planning for the future."

Mike, 31: "I realized that budgeting doesn’t mean restricting myself, but rather giving myself permission to spend on what truly matters. I used to feel guilty about every little expense, but now I budget for fun stuff too—like travel or nights out with friends—while still saving for bigger goals. It’s made managing my money way less stressful and more about living the life I want."

Jessica, 26: "My big wake-up call was understanding the impact of high-interest debt, especially credit cards. I was carrying a balance for years and didn’t realize how much interest was eating into my finances. Now, I focus on paying off my credit card in full each month and only using it for things I can afford to pay off immediately. It’s been a game-changer for my financial peace of mind."

Based on Ray Dalio's advice for millennials, here are five key practical tips about money:

1. Prioritize Savings

Dalio emphasizes the importance of saving money as a foundation for financial security. He advises millennials to calculate how many months of expenses their savings can cover. This emergency fund provides freedom and security, acting as a financial cushion.

2. Avoid Holding Too Much Cash

While saving is crucial, Dalio warns against keeping too much money in cash. He states that "cash is the worst investment over a period of time" due to inflation eroding its value. Instead, millennials should consider other investment options that can potentially outpace inflation.

3. Diversify Investments

Dalio strongly recommends diversifying investments across different asset classes and countries. He stresses that it's impossible to consistently pick the "right" investment, so spreading risk is essential. This strategy helps protect against significant losses in any single investment.

4. Be Contrarian in Investing

Millennials should "do the opposite of what your instincts are" when it comes to investing, according to Dalio. This means buying when others are selling and vice versa. However, he cautions that this approach requires emotional discipline and may be challenging for inexperienced investors.

5. Focus on Long-Term Financial Health

Dalio advises millennials to look beyond their recent experiences (like the 2008 financial crisis) and consider long-term financial patterns. This broader perspective can help in making more informed financial decisions and avoid being overly influenced by recent events.

By following these tips, millennials can work towards building a strong financial foundation for their future, balancing savings with smart investment strategies.

If You Want To Be a Millionaire, Read These Books…

Codie Sanchez

The Top Books Every Entrepreneur Must Read in 2024

Built from Scratch: One of the best blueprints for succeeding in entrepreneurship. It's about Home Depot. Bernie Marcus and Arthur Blank built this empire from scratch after getting fired from their previous jobs.

Poor Charlie's Almanac: This is a goldmine of wisdom from Charles T. Munger, Warren Buffett's longtime business partner. Munger was a master of mental models and believed that understanding the world through a framework of interconnected ideas is key to success.

The Ride of a Lifetime: Robert Iger's memoir chronicles his tenure as CEO of Disney from 2005 to 2020. It provides insights into Iger's leadership philosophy, the challenges he faced, and the strategies he employed to transform Disney into a global powerhouse.

Walter Isaacson's biography of Steve Jobs reveals the visionary genius behind Apple's success. Jobs' relentless pursuit of perfection and his ability to inspire and convince others shaped the tech landscape.

Walter Isaacson's biography of Elon Musk delves into the mind of a true innovator. Musk's relentless drive, his "first principles" thinking, and long-term vision have propelled him to revolutionize multiple industries.

Sam Walton: Made in America chronicles Walton's journey from a small-town entrepreneur to the founder of Walmart, detailing the principles and philosophies that guided his business practices. It's a testament to the power of customer obsession and operational excellence.

Am I Being Too Subtle? This memoir details the life and career of Sam Zell, a self-made billionaire known for his unconventional approach to business. It offers a candid recount of Zell's experiences, highlighting his successes, failures, and the lessons he learned.

Shoe Dog: Phil Knight's memoir chronicles Nike's incredible journey from a small start up to a global brand synonymous with athletic excellence. Knight's story is a testament to the power of passion, perseverance, and a relentless focus on innovation.

OPINION
As millennials, we find Codie Sanchez's list of books for entrepreneurs in 2024 both inspiring and practical. It’s great to see a mix of traditional business classics and stories from leaders who have shaped the modern world. For many of us, books like "Shoe Dog" and "The Ride of a Lifetime" resonate because they show how even the most successful brands had humble beginnings and faced serious challenges. It's a reminder that entrepreneurship isn't just about having a brilliant idea; it's about perseverance, creativity, and resilience in the face of obstacles.

What's also appealing is the inclusion of books like "Poor Charlie's Almanac" and Elon Musk's biography, which emphasize the importance of mindset and thinking differently. Millennials often look up to leaders who challenge the status quo and think outside the box, so these stories really hit home. Overall, this list is a fantastic mix of practical lessons and inspirational journeys that can motivate us to pursue our dreams with a strategic and innovative approach.

Millennials and Gen Z are buying homes with friends to achieve their homeownership dreams

CBS Mornings

Data shows that splitting home ownership is on the rise, and could even be the new normal as younger generations navigate the market. A survey from earlier this year found nearly 15% of Americans have co-purchased a home with someone other than a romantic partner, and another 48% say they would consider it.

OPINION
Yeah, it makes sense that more people are splitting home ownership these days, especially with how tough the housing market is right now. For millennials, things like rising home prices and student loan debt make it hard to buy a house on your own. Co-owning with a friend or family member is a way to make it more affordable and actually get into the market. Plus, it’s a practical way to share the financial responsibility without waiting for the "perfect" time or partner. It’s just a smart move, given the situation.

6 Things Millennials Can Do Now To Grow Their Wealth With an Eye on Retirement, Go Banking Rates

Revealing My Six-Figure, Market-Beating Portfolio At The Age Of 30, Millennial Dividends

Why The ‘Broke Millennial’ Stereotype Is Wrong Taylor Tepper, Forbes Advisor

5 Easy Ways Millennials Can Build Wealth in 2025 Josephine Nesbit, AOL.

Ramit Sethi’s Financial Blueprint: Essential Advice for Millennials Bob Savar

The Financial Playbook of Alex Hormozi: Advice for Millennials Bob Savar

What do millennials spend money on? Bob Savar

Millennials and Gen Z investing in stocks at a younger age George Morahan, Business Plus

Millennials Bear Brunt of Remote Caregiving: 'Millions Under Pressure' Newsweek

Economic Challenges for Millennials: Insights from Charlie Munger Benzinga: Charlie Munger warned that millennials would face significant challenges in 2021, particularly in achieving financial success, compared to previous generations.

These Are the 4 Best Cars for Gen Z and Millennials Starting a Family GoBankingRates: Honda CR-V (2025), Toyota RAV4 (2024), Kia Carnival (2024), and Subaru Outback (2025)

Sound Bites, Not Substance: How Politicians Are Failing Young Voters David Gonzalez, The Harvard Crimson: “Until political leaders truly understand the growing role of young voters, they will continue to use them as props. And, all the while, our concerns will remain unaddressed and our future uncertain.”

How does the 2024 election in the U.S. affect millennials? Bob Savar

What are we getting wrong about voters? Cathy Cohen

Young People are Going to Fix our Democracy Future Caucus president Layla Zaidane talks about how Gen Z and millennial lawmakers cross the aisle to find solutions.The Chronicle of Philanthropy

Why are millennials and Gen Z giving up on democracy? Emma Hoy, 360

Young, Broke & Educated 

by Alexander Baima

Young, Broke, and Educated explores the challenges faced by young adults navigating the post-college world, focusing on financial independence, personal development, and career growth. The book provides practical advice on how to thrive despite limited financial resources, using education and smart decision-making as tools to build a stable and fulfilling life.

OPINION
Young, Broke, and Educated really hits home for anyone who's just starting out and trying to figure out how to adult with student loans, low-paying jobs, and not a lot of guidance. We appreciated that the book didn’t sugarcoat how hard it can be to manage money and plan a career right out of college.

That said, it did feel a bit basic at times. If you’re already a little savvy about money, you might find some parts repetitive. And while Baima’s take on long-term planning is solid, we kind of wished there were more real-life stories or diverse perspectives to make it feel a bit more relatable. But overall, it's a good starting point for anyone feeling overwhelmed by the whole "adulting" thing!

"The goal isn't more money. The goal is living life on your terms."
– Chris Brogan, an American author, journalist, marketing consultant, and speaker about social media marketing