Your Financial Power-Up: Insights & 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 Point of the Week

• Practical Financial Tips from Alex Hormozi

• Top Stories of the Week with Our Opinions

• Stories We’re Following

• Political Corner

• Book of the Week

• Quote of the Week

What’s the biggest financial challenge you’re facing right now, and what steps are you taking to overcome 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 financial goal do you hope to achieve in the next 12 months, and what steps are you taking to reach it?

Here are three of the answers we received:

Samantha, 29: "I really want to pay off my credit card debt in the next year. I’ve started using the snowball method—tackling my smallest debt first and rolling the payments into the next."

Jake, 31: "My goal is to save up enough for a down payment on a house. I’m automating my savings by setting aside 20% of every paycheck into a high-yield savings account."

Alicia, 27: "I want to build a solid emergency fund. I’m aiming for three months' worth of expenses and have set up a budget to stick to. I’m also using an app to track my spending and avoid impulse buys so I can save more."

An important data point for millennials today is the average retirement savings. Studies show that many millennials are not saving enough for retirement, with a significant portion having less than $25,000 saved by their mid-30s. This shortfall is concerning, especially with rising costs of living, student debt, and the decline of traditional pension plans. Understanding this gap highlights the urgent need for millennials to prioritize long-term savings and retirement planning early on to ensure financial security in later years.

Increase Income, Not Just Cut Expenses: Focus on earning more rather than only cutting costs—your income potential is limitless.

Invest in Yourself: Acquire high-income skills like sales, marketing, or coding to boost your earning potential and career opportunities.

Build Assets, Not Just Savings: Prioritize creating income-generating assets (businesses, investments) over simply saving money.

Embrace Risk Early: Take calculated risks in your 20s and 30s, leveraging time to recover and learn from setbacks.

Leverage, Not Just Effort: Use tools, systems, and networks to multiply your impact, focusing on high-leverage activities rather than manual effort.

Develop Sales Skills: Master the art of selling—whether products, ideas, or yourself—to open up greater opportunities.

Build a Personal Brand: Establish a personal brand and network for long-term growth and to attract business and career opportunities.

Ultimately, Hormozi’s financial approach is about thinking long-term, embracing failure as a learning tool, and focusing on wealth-building strategies that lead to financial independence.

Why Millennials will NEVER own a Home! Millionaire Mindsets

This video discusses the challenges Millennials and Gen Zers face in achieving homeownership. The speaker delves into the reasons behind the rising home prices, the financial burdens of buying a home, and why a housing market crash is unlikely.

Opinion
As millennials, it feels like owning a home is getting further and further out of reach. Prices are insane — homes that used to be affordable just a few years ago have skyrocketed, and our salaries aren’t exactly keeping up. It’s frustrating because we’re told that homeownership is the key to building wealth, but when you’re already struggling to save for a down payment, it feels impossible. We hear a lot about financial discipline, but honestly, it feels like even that’s not enough when the market is this tough.

How Tony Robbins' Financial Advice Transformed Lucille's Life: A Single Mom's Journey to Financial Freedom

Bob Savar, Medium

Lucille is a 34-year-old single mother who freelances designing websites from home. Earning around $100,000 annually, she juggles a career, motherhood, and a growing financial concern. With her three-year-old daughter enrolled in preschool, she’s used to multitasking, but one task has always felt daunting—planning for her financial future. She never considered herself financially savvy and always focused on getting by rather than getting ahead. Read Lucille’s story.

Are Millennials and Gen Z actually worse off than their parents? | Jeremy Horpedahl

Economist Jeremy Horpedahl breaks down the economic outlook for Millennials and Gen Z and assesses how the 2024 presidential candidates' policies stack up against reality. They challenge the narrative that Millennials and Gen Z are financially worse off than previous generations, with economist Jeremy Horpedahl arguing that younger generations are doing better in terms of wealth and income when adjusted for inflation.

Opinion
It's refreshing to hear a different take on Millennials and Gen Z being financially better off than we often believe. Adjusting for inflation and wealth growth does paint a more optimistic picture, especially when you consider our investments in stocks and retirement plans, something previous generations didn’t focus on as much. Sure, housing is still a challenge, but it's nice to hear that we might catch up in wealth as we hit our 30s and 40s. Definitely some food for thought!

What Millennials Can Learn About Entrepreneurship from Richard Branson 

Bob Savar, Medium

This article explores the key lessons from Branson's life and how the millennial generation can apply them. Read the story here.

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

Debunked: Myths and misconceptions about millennials Christopher Nagy, 517 Business & Life

5 Ways Millennials Can Know They’re on Track for a Comfortable Retirement Andrew Lisa, AOL.

Why Millennials Can't Afford Housing and Can't Find a Good Paying Job - Tips for Success Brian Maxwell - Selling for Success

Millennials Drive 63% Of Corporate Bond Investments Report BW BusinessWorld

Rich Millennials and Gen Zers See Investments Differently Than Older Generations Jordan Rosenfeld, GoBankingRates

GEN Z & Millennials Faisal Susiwala

Gen Z and millennials seeing greater impact from uncertain job market, doctor says Yahoo!News

How Millennials Can Succeed In Today’s Tough Economy Legacy Investing Show

Why Millennials Play a Key Role in the Cryptocurrency Market Rich Bertch, The Eagle

Retirement: How millennials, Gen Z can start building nest egg Yahoo! Finance

Millennials and Gen Zers are now helicopter parenting their parents Julia Pugachevsky, Business Insider

Sound Bites, Not Substance: How Politicians Are Failing Young Voters David Gonzalez

Biden’s student loan-forgiveness plan gets blocked (again), putting relief in limbo as the election nears Nia Warfield, Sherwood 

Harris is Outspending Trump Online Rani Molla, Sherwood

How will GenZ and millennials shape the future of US politics? uchicago

Millennial Money Mindset:: If You Want The Fruits You Need The Roots
by Neil Doig

The book emphasizes the importance of building a solid financial foundation (the "roots") to enjoy long-term wealth and security (the "fruits"). Doig breaks down complex financial concepts into easy-to-understand strategies, focusing on saving, investing, and developing a healthy money mindset.

OPINION
We give "Millennial Money Mindset" a solid 4 out of 5. Neil Doig gets that managing money as a millennial is tricky—between student loans, crazy rent prices, and the pressure to live your best life on Instagram, it’s not easy. What we liked most is how he breaks down financial concepts without all the jargon, and he makes it super practical. The "roots and fruits" analogy really clicked for us, especially when thinking about long-term goals.

"Don’t tell me what you value, show me your budget, and I’ll tell you what you value." — Joe Biden