Money Hacks 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

• Data Points of the Week

• Tony Robbins says “Take Control of your Financial Future”

• Top Stories of the Week with Our Opinions

• Stories We’re Following

• Book of the Week

• Quote of the Week

QUESTION OF THE WEEK

What is the most valuable financial lesson you've learned so far, and how did it change your money management approach?

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

ANSWERS TO LAST WEEK’S QUESTION

Last week’s question was, "Which budgeting tools or apps do you find most effective for managing your finances, and what specific features make them useful for your needs?"

Here are three of the answers we received:

Emily, 29: "I use You Need a Budget (YNAB) because it forces me to be proactive with my money. The app's zero-based budgeting system makes me assign every dollar a job, which helps me stay on top of my spending and save more effectively."

Jake, 32: "Mint is my go-to app because it automatically tracks my expenses and categorizes them, giving me a clear picture of where my money is going."

Sarah, 27: "I’ve been using PocketGuard recently, and I love how it shows me exactly how much I have 'left to spend' after accounting for my bills, goals, and necessities."

DATA POINTS OF THE WEEK

Here's a look at the proportion of millennials with the following savings account balances:

$100 or less: 39% 

$101 to $500: 12%

$501 to $1,000: 49%

Tony Robbins says
“Take Control of Your Financial Future”

Tony Robbins offers several key pieces of advice to millennials regarding money:

Start Early: Robbins emphasizes the importance of starting to invest as early as possible. He illustrates how investing a small amount regularly from a young age can lead to significant wealth due to the power of compounding interest.

Understand Compounding: He explains that millennials have the advantage of time, which allows them to benefit greatly from compounding. For example, consistently investing $300 a month from age 19 to 27 can result in substantial returns over time.

Focus on Not Losing Money: Inspired by Warren Buffett's principle, Robbins advises focusing on avoiding losses rather than making risky investments. This involves choosing safer, more stable investment options.

Know Your Taxes: Understanding how taxes affect investments is crucial. Robbins suggests being aware of tax implications on short- and long-term investments to make informed decisions.

Diversify Investments: He advises against putting all your money into one type of investment. Diversifying your portfolio can help mitigate risks associated with market fluctuations.

These strategies aim to empower millennials to take control of their financial future and build wealth over time.

Income NEEDED For Millennials and Gen Z To QUALIFY For A 450k House With A 6% Rate

by Freddie Smith

In this video, Freddie discusses the financial implications of a $450,000 mortgage with a 6% interest rate. He calculates that a 10% down payment and closing costs amount to $60,000 upfront. Monthly payments, including taxes and insurance, would be around $3,200. To qualify for such a loan, one needs a salary of about $100,000 with no existing debt, or $130,000 if they have $1,000 in monthly debt obligations. Freddie advises earning $150,000 to $175,000 annually to comfortably afford the house without becoming 'house poor.'

OPINION
Wow, Freddie really broke down the numbers on this! 😅 It's crazy how much you need to make to not feel 'house poor' with a $450K mortgage at 6%. A lot of us millennials are just trying to save up for that $60K down payment, let alone earn $150K+. Honestly, it feels like the dream of homeownership is slipping further away unless you're dual income or have zero debt. Guess it’s time to rethink those avocado toasts AND side hustles! 😂 Thanks for the reality check, Freddie!

Boomers Had It Easier Than Millennials 
Legacy Investing Show

He argues that the financial challenges faced by baby boomers in the '80s were not as severe as they claim. He contrasts their $222,000 annual income against a $47,000 home price, allowing for an affordable 20% down payment, with today's scenario where a $8,000 salary struggles to afford a $419,000 home, even with a 1% interest rate.

OPINION
It’s frustrating when Boomers say they had it tougher with those interest rates. Sure, things weren't perfect back then, but the cost of living, housing prices, and even job stability were way different. Today, we’re dealing with insane student debt, skyrocketing rent, and a crazy competitive job market. Every generation has its struggles, but let's be real about the different challenges we all face. Maybe instead of arguing over who had it worse, we should focus on making things better for everyone moving forward.

Four Reasons Why Millennials Don't Have Any Money | Robert Reich

In this video Robert Reich highlights the significant generational wealth gap between baby boomers and millennials, who face stagnant wages, soaring costs of housing and education, and substantial debt. Millennials are struggling with student loans, credit card debt, and the decline of pension plans, making it difficult to enter the middle class and save for retirement. Reich calls for policy changes to address these issues and ensure financial security for young Americans.

OPINION
Honestly, Reich's points really hit home. As a millennial, it often feels like we're stuck in a cycle where everything—housing, education, even basic living costs—just keeps getting more expensive, while our wages don’t seem to keep up. We’re juggling student loans, credit card debt, and a job market that’s far less secure than it was for previous generations. The idea of saving for retirement seems almost laughable when just getting by month-to-month is a struggle. We need policy changes that address these structural issues, like affordable education, debt relief, and stronger social safety nets, so we can actually have a shot at financial security.

Let's Talk Money: Navigating Finances As A Millennial

with Gerber Kawasaki

On this month’s Let’s Talk Money episode, CEO Ross Gerber talks to two of GK’s young advisors, Mia Samson and Jimmy Bisharat, to answer financial questions. This week, the team touches on the benefits of a high-yield savings account, how to avoid credit card debt, and the best ways to navigate finances in a romantic relationship. With this group, nothing is off the table!

OPINION
Okay, real talk regarding high-yield savings accounts. They are like the secret weapon for millennials trying to be smart with their money. They give us way more interest than regular savings accounts, so our money grows faster without doing anything extra. Perfect for stashing cash for that spontaneous trip or just having a safety net for when life gets messy. Plus, it feels good knowing your savings are actually working for you, not just chilling in a low-interest account. More growth, less effort—who wouldn’t want that?

The 6 Best Tax Planning Strategies for Millennials To Start Now Nasdaq

Retirement moves for millennials without savings Aaron Cirksena, Insurance Newsnet

Top 10 Financial Challenges Faced by Millennials airtel

Dave Ramsey’s Secret to Becoming a Millionaire: Turn Off the TV and Start Reading Bob Savar, Medium

Gen Z, Millennials Skipping Parenthood Over The Price Tag: Study, Terry Massey, International Business Times

Why Precious Metals Are Gaining Popularity Among Millennials in 2024 Bullion Exchanges

'The biggest barrier': First time buyers struggle with new challenge to ownership Emily Douglas, MPA

Millennial wealth has surged 144% since the pandemic, but generational gap still wide Serah Louis, Financial Post

Unlocking the $1 Million Retirement Plan: Your Ultimate Guide on an $80K Salary — Thank you, Emily Lorsch! Bob Savar, Medium

5 Reasons Boomers Are Worse Off For Retirement Than Millennials Rebecca Rosenberg, Investopedia

The Financial Playbook of Alex Hormozi: Advice for Millennials Today’s Musings Bob Savar, Medium

Apartment List's 2024 Millennial Homeownership Report Apartment

The Average Monthly Retirement Budget Is $4,345 — Can Millennials Live Off That? Caitlyn Moorhead, GOBankingRates

What do millennials spend money on? Bob Savar, Medium

Money Skills for Young Adults Now: A Millennial’s Guide to Financial Freedom and Security 

by Timothy Olsen

"Investing for Millennials Made Easy" by Timothy Olsen breaks down the often intimidating world of investing into five straightforward steps tailored for millennials. The book emphasizes a stress-free approach, focusing on simple strategies that anyone can follow, even with limited knowledge or resources.

OPINION
Too Basic for Some: The book's advice felt a bit too elementary.

Not Enough Real-Life Examples: It would've been more helpful if the author included more real-life examples or stories from actual millennials who have successfully used these steps.

A Little Dated on Tech: Some parts of the book don’t quite reflect how tech-savvy our generation is.

"Too many people spend money they earned…to buy things they don’t want…to impress people that they don’t like."
—Will Rogers