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Millennial Money Tips: Save & Invest
Unlock financial freedom with expert strategies for saving and investing.
Hey Millennials!
Welcome to the Millennial Financial Times tribe! We’re excited to have you with us. A big warm welcome to our new subscribers.
The Millennial Financial Time provides you with practical financial insights, tips, and strategies to help you navigate your financial journey. Our mission is to empower you with the knowledge and tools you need to achieve financial independence and a balanced, fulfilling life.
We’re trying a new format this week and hope you like it. It’s a bit more orderly with less fluff and contains dozens of actionable advice for Millennials to prosper in today’s tricky economic environment. Dig in and let us know what you think!
Top Stories This Week
Something to Save - Tips and strategies for saving money
Something to Invest - Investment opportunities and strategies
Something to Read - Curated relevant publications, including social media posts and news articles that appeared this past week plus engaging books
Question of the Week - What financial habit has made the biggest positive impact on your life?
Follow-Up in the Next Issue - Reader Responses to Last Week's Question.
Book of the Week review
1. Something to Save
Tips and Strategies for Saving Money, Including Practical Advice, Tools, and Apps for Saving, along with Easy-to-Implement Personal Finance Tips
Learn how to save an extra $200 a month with these 5 simple budgeting hacks:
TRACK YOUR SPENDING: Ever wonder where your money disappears every month? Try using apps like Mint or YNAB (You Need a Budget) to track your spending. These apps categorize your expenses, so you can see exactly where your money is going. By identifying your spending patterns, you can make informed decisions and cut back on unnecessary purchases.
SET UP A WEEKLY BUDGET: Impulse buys can add up quickly! Set a weekly budget for non-essential items like dining out, entertainment, and shopping. For example, allocate $50 a week for these extras and stick to it. This way, you can still enjoy your favorite treats without breaking the bank.
AUTOMATE YOUR SAVINGS: Saving money doesn’t have to be hard. Set up automatic transfers from your checking account to your savings account each payday. Even if it’s just $25 a week, it adds up over time. You'll be surprised how quickly you can build your savings without even thinking about it!
USE CASH-BACK REWARDS: Why not get rewarded for spending money? Sign up for cash-back programs like Rakuten or use credit cards that offer cash-back on purchases. You can earn a little extra every time you shop, and those rewards can go straight into your savings account.
CANCEL UNUSED SUBSCRIPTIONS: Do you have subscriptions you never use? It’s time to do a clean sweep. Go through your bank statements and identify any recurring charges for services you don’t need, like that gym membership you haven’t used in months or streaming services you rarely watch. Canceling these can free up more money for your savings.
DIGGING DEEPER
Credit Card Cash-Back Rewards Programs
Tired of watching your hard-earned cash slip through your fingers? Imagine turning those everyday purchases into cold, hard cash. The Chase Freedom Unlimited card does just that, giving you a solid 1.5% back on everything you buy. But wait, there's more! You can score an even bigger chunk of change with 5% cash back on travel booked through Chase and 3% on dining and drugstores. It's like getting paid to live your life!
Love surprises? The Discover it® Cash Back card is like finding extra money in your coat pocket. Every quarter, they pick new spending categories where you can score a sweet 5% cash back. Plus, they're so confident you'll love it, they'll match all the cash back you earned in your first year! It's like getting paid to shop.
Want to double your dough? The Citi Double Cash Card is your ticket. You get a cool 1% back when you buy something, and another 1% when you pay it off. It's like finding loose change in your couch cushions, but way better.
American Express Blue Cash Preferred® Card
Groceries and streaming are life, right? The American Express Blue Cash Preferred Card rewards you for the essentials. Score 6% cash back on groceries and select streaming services, plus 3% on transit. It's like your card is your personal shopper, helping you save money on the stuff you actually use. And as a welcome bonus, you'll get a $300 statement credit – that's like free money!
Online Shopping Cash-Back Rewards Programs
Love online shopping? Rakuten is your secret weapon to score extra cash. They hook you up with cashback on tons of stores, and sometimes, the deals are off the charts – like, 10% back or more! Plus, just for signing up, you get a sweet $10 bonus. It’s like getting paid to shop – who doesn’t love that?
Ever wished your online shopping could earn you rewards? Honey Gold turns your purchases into points you can swap for gift cards. It's like finding surprise money in your pocket. They also have secret deals and bonuses at your favorite stores, so you can rack up those points even faster.
Want to make some extra cash on everyday stuff like groceries and clothes? Ibotta is your new best friend. Snap a pic of your receipt or link your loyalty cards, and boom – cash back! They even give you a bonus just for trying it out. It's like finding hidden treasure in your wallet.
Retailer-Specific Cash-Back Programs
Obsessed with Target runs? The RedCard is your golden ticket to savings. Score a flat 5% off everything you buy, plus early access to sales and free shipping on most items. It's like having a permanent Target discount code in your wallet – hello, budget bliss!
Love the convenience of Walmart (and who doesn't)? The Walmart Rewards Card rewards your loyalty. You get 5% back on online purchases, 2% back in-store and at gas stations, and 1% everywhere else. Plus, they hook you up with special financing deals on bigger buys, making saving for that dream couch even easier.
Amazon Prime Rewards Visa Signature Card
Live and breathe Amazon? This card is your BFF. Get a whopping 5% cash back on everything you buy at Amazon and Whole Foods Market, plus 2% back at restaurants, gas stations, and drugstores. They even throw in a sweet $100 Amazon gift card just for signing up – basically, it's like free money to fuel your shopping addiction.
These cash-back programs can help you save money on everyday purchases and earn rewards that you can use to boost your savings or fund other financial goals.
The Best App for Millennials to Track Spending is “Mint.” Here's why:
Okay, so, Mint is like a total lifesaver when it comes to managing your money, especially if you're a Millennial. It's super easy to use and it does all the heavy lifting for you. It automatically sorts your spending, helps you set budgets, and even reminds you when bills are due. Plus, it's free! Imagine getting a personal finance assistant without paying a dime. And guess what? You can even use it with your whole family. It's like having a shared money diary, but without the drama.
Additional Recommendations
YNAB (You Need a Budget) is like having a personal money coach. It's all about planning ahead. You basically tell every dollar where to go before it even shows up. It's kinda intense, but people swear by it. They have these workshops and stuff to help you get started, but it does cost money.
PocketGuard is a little more laid back. It basically tells you how much you can spend without freaking out about overdrafting. You can totally customize it to fit your life, which is nice. And the best part? It's free! But if you want extra features, you gotta pay a little.
Goodbudget is like old-school budgeting with a modern twist. You pretend your money is in different envelopes, you know? It’s a good way to stay on top of your spending. You can even share it with your partner or roommates. Plus, it helps you kick debt to the curb./
Here are some popular apps you can use to cancel unused subscriptions:
- Truebill (now known as Rocket Money)
- Bobby
- Subby
- Hiatus
- PocketGuard
Using these apps can help you save money by identifying and canceling subscriptions you no longer need or use, making it easier to manage your finances and stay on budget.
Ease into investing
Ease being the key word. With automated tool like portfolio rebalancing and dividend reinvestment, Betterment makes investing easy for you, and a total grind for your money.
2. Something to Invest
Investment opportunities and strategies. We offer insights on different investment options, market trends, and beginner guides to investing tailored to Millennials' interests and financial goals.
Interested in growing your wealth? Discover the top 3 index funds to invest in this year and why they're a great choice for Millennials.
Top 3 Index Funds for 2024
Vanguard Total Stock Market Index Fund (VTSAX) is like casting a wide net. It's a chill, low-maintenance option that invests in almost every U.S. company, big and small. It's like betting on the entire American economy! The downside? You might not get those super high returns you see in the news, but you'll probably do better than most people in the long run.
Schwab S&P 500 Index Fund (SWPPX) is like putting your money on the biggest players in the game. It only invests in the 500 largest companies in the U.S., so you're getting a good chunk of the market. It's simpler than the total market fund, but you're missing out on those smaller companies that could be the next big thing.
Fidelity ZERO Total Market Index Fund (FZROX) is the budget-friendly option. It covers the whole U.S. market like VTSAX, but without any expense fees! That means more money in your pocket. It's a great choice if you're just starting out and want to keep costs low. But remember, low fees don't guarantee high returns.
Index Funds vs. other investments in 2024: A Preliminary Look
Disclaimer: While we can discuss general trends and expectations, specific performance data for the entire year of 2024 might not be fully available yet.
General Market Trends in 2024
2024 has been a year of resilience and recovery for the global economy, with several factors influencing investment performance:
Persistent Inflation: Although inflation has been gradually cooling down, it remains a key concern.
Interest Rate Hikes: Central banks have been carefully managing interest rate increases to balance inflation control and economic growth.
Geopolitical Tensions: Ongoing geopolitical events continue to introduce uncertainty into the market.
Artificial Intelligence Boom: The rapid development of AI has created both opportunities and challenges for investors.
Index Funds Performance
Given the overall positive market sentiment, index funds have generally performed well in 2024. Their diversification benefits have helped to mitigate risks associated with specific sectors or individual stocks.
Comparison to Other Investments
Bonds: The bond market has been volatile due to fluctuating interest rates. While some bond funds have generated returns, others have faced challenges.
Real Estate: The real estate market has shown mixed performance, with some regions experiencing price increases and others facing corrections. Real estate investment trusts (REITs) have reflected these trends.
Commodities: Commodity prices have been influenced by factors such as supply chain disruptions, geopolitical events, and global economic conditions. Overall, commodities' performance has been varied.
Cryptocurrencies: The cryptocurrency market remains highly volatile, with significant price fluctuations. Its correlation with traditional assets has been inconsistent.
It's important to note that past performance is not indicative of future results. Market conditions can change rapidly, and diversification across different asset classes is crucial for managing risk
“Darts, monkeys and Wall Street: Your stock market success might just be dumb luck”
Mark R. Rank in an article inn MarketWatch called “Opinion: Index funds are the best way to invest in the stock market — and if you need more proof, here it is” (and subtitled “Darts, monkeys and Wall Street: Your stock market success might just be dumb luck”) “suggests that investing in the stock market is best done through an index fund. Such a fund will mirror the overall patterns in the market. Because the long-term trajectory of the stock market has been upward, the investor whose portfolio is indexed to say, the Standard and Poor’s 500 Index…should do fine over the long horizon. But for the investor who chooses to play the market, buyer beware.”
3. Something to Read
Curated and shared relevant articles, blogs, and other resources on Millennials and finance with our insights on various financial topics
This Week's Top Reads
Navigating Financial Freedom for Millennials and GenZ with T.J. van Gerven
Millennials Money Management: Mastering Personal Finance Tips for a Brighter Future
4 Reasons Middle-Class Millennials Should Be Wary of a Trump/Vance 2024 Election Win
The crucial ways for CEOs to understand Gen Z and Millennial needs
Expert Tips for Turning Your Side Hustle Into a Full-Time Business
Side hustles to get by: TikTok creators share how they're beating inflation
Millennials vs. Gen Z: How the two generations manage their money
Two-fifths of millennials fear their parents are frittering away their inheritance, survey finds
Why Wait? Millennials Choosing the “Retired” Life in their Middle Years
4. Question of the Week
"What financial habit has made the biggest positive impact on your life?"
How to Participate: Reply to this email with your answer, and we'll feature some of the best responses in next week's newsletter!
Tips:
Track your spending using apps like Mint.
Set a weekly budget for non-essential items.
Automate your savings.
Use cash-back rewards programs.
Cancel unused subscriptions.
5. Follow-Up in the Next Issue
Next week we will list the top responses to this week’s question.
6. Book of the Week Review
“I Will Teach You to Be Rich: No Guilt. No Excuses. Just a 6-Week Program That Works” by Ramit Sethi
Let's dive into "I Will Teach You to Be Rich: No Guilt. No Excuses. Just a 6-Week Program That Works" by Ramit Sethi. This book is a treasure trove of practical advice for managing your money and building wealth. It’s laid out as a six-week program covering everything from credit cards to investing, all designed to fit into a busy lifestyle. Sethi’s approach is straightforward and no-nonsense, perfect for Millennials looking to get their finances in order.
Sethi believes that anyone can achieve financial success with the right mindset and habits. He emphasizes the importance of having a positive attitude towards wealth. One common misconception he debunks is the idea that managing finances is overly complicated or requires a large income. According to Sethi, small, consistent actions can lead to significant financial growth over time.
Sethi’s 6 Week Program
Week 1: Optimize Your Credit Cards
The first step is choosing the right credit card. Sethi advises picking cards with the best rewards, lowest fees, and favorable interest rates. When used wisely, credit cards can offer benefits like cash-back, travel points, and purchase protection. However, it’s crucial to avoid common traps such as carrying a balance or missing payments. Sethi provides strategies for effective credit card management.
Week 2: Beat the Banks
Next, Sethi encourages shopping around for the best bank accounts, those with high interest rates and low fees. He also shares tips on negotiating with banks to reduce or eliminate fees. Automation plays a big role here—Sethi explains how to set up automatic transfers for savings, investments, and bill payments, making your financial life easier.
Week 3: Get Ready to Invest
Investing is key to building wealth, and Sethi breaks down the basics, including stocks, bonds, and mutual funds. He discusses various investment options, helping you understand which might fit your goals and risk tolerance. Investing involves risk, but Sethi offers strategies to manage and mitigate these risks effectively.
Week 4: Conscious Spending
Conscious spending is about prioritizing expenses that bring joy and cutting back on less important ones. Sethi’s approach helps you align your spending with your values. Setting up a conscious spending plan involves allocating funds to essential expenses, savings, and personal spending, ensuring a balanced financial life. Importantly, he emphasizes guilt-free spending on things you love, as long as it fits within your budget.
Week 5: Save While Sleeping
Automation is crucial for consistent savings. Sethi advises on setting up automatic contributions to savings and investment accounts. Building an emergency fund is also essential for financial security, and Sethi guides you on how to establish and maintain it. Long-term goals like retirement savings are also covered, with tips on contributing to accounts like 401(k)s and IRAs.
Week 6: The Rich Life
Everyone’s idea of a rich life is different. Sethi encourages defining what a rich life means to you personally and setting long-term financial goals accordingly. Staying motivated can be challenging, but Sethi offers tips to keep the momentum going, even when times get tough.
Practical Daily Routines
Incorporating small financial habits into daily life can lead to significant improvements over time. This includes regular savings, mindful spending, and continuous learning about personal finance. Regular financial check-ins, such as monthly reviews of your budget, savings, and investments, help keep you on track. Being mindful about spending means thinking critically about purchases and ensuring they align with your financial goals and values.
Yes, there have been critiques and challenges to the credibility of "I Will Teach You to Be Rich" by Ramit Sethi. Here are some of the main criticisms:
Simplistic Approach: Some critics argue that Sethi's advice can be overly simplistic. They feel that while his strategies may work for a broad audience, they may not account for the complexities of individual financial situations. Personal finance can be nuanced, and a one-size-fits-all approach might not be effective for everyone.
Overemphasis on Automation: While automation is a key theme in Sethi's book, some readers believe that it might lead to a lack of engagement with one's finances. Automation can make financial management easier, but it might also cause individuals to become too detached from actively managing and understanding their financial health.
Lack of Focus on Debt Management: A few critics have noted that the book doesn't place enough emphasis on managing debt, particularly high-interest debt. While Sethi does cover the topic, some feel that more in-depth strategies and advice could be beneficial, especially for readers struggling with significant debt.
High Expectations: Some readers find that the book sets high expectations that can be difficult to achieve, particularly for those in lower-income brackets or with unstable financial situations. The idea of living a "rich life" might feel out of reach for some, leading to frustration or discouragement.
Overly Optimistic: Another criticism is that the book can be overly optimistic about the ease of achieving financial success. While Sethi's strategies are actionable, the path to financial stability and wealth can be challenging and requires more than just following a few steps.
Thank you for reading this edition of Millennial Financial Times. Whether you’re just starting your financial journey or looking to refine your strategies, our newsletter offers valuable insights tailored specifically to you.
Your journey to financial freedom doesn’t have to be a solo endeavor. Let’s learn, grow, and succeed together. Stay tuned for our upcoming issues, packed with even more valuable content and opportunities to engage with our community.
Remember! Your feedback and participation are what make this newsletter truly special. Feel free to reach out with questions or suggestions or to share your own financial success stories.
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Best Regards,
The Millennia Financial Times Team 💖
July 30, 2024
DISCLAIMER: The information provided in the Millennial Financial Times is intended solely for informational purposes. It should not be considered as financial advice. Readers are encouraged to consult with a professional financial advisor before making any investment or financial decisions.
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