Tuesday, October 13, 2015

Dynamic Financial Advice for Millenials

The most unemployed and underemployed are college graduates earning less than college graduates did 10 years ago. According to Generation Opportunity, the unemployment rate for 18 to 29 year-olds in April 2015 was 13.8%. That figure includes those who have given up looking for work and those working part time.

Unfortunately, many college graduates do not ask for a raise, which directly affects their economic status. However, millennial men frequently ask for a raise and usually get it. 

Entrepreneurs are a vital component of America’s global economy. They create 90% of the jobs in America.  They create innovative solutions, creativity, marketing and technology to propel their businesses.

According to Edward Jones, 51% of millennials usually do not invest in a 401k or retirement plan.  Millennials are delaying marriage and starting a family to get their finances in order. 

Millennials must plan for the expected and have a contingency plan. They must identify possible scenarios that could occur and develop solutions on how to deal with them. Millennials can and should know how to manage their finances. Millennials should stop focusing on YOLO and FOLO.
Millennials need to become empowered with financial knowledge, which will help them make the best financial decisions throughout their life.  Here are 27 ways for millennials manage their finances.


  1. Create a budget to control spending. Make your budget flexible to accommodate for unexpected expenses and include savings goals. Include monthly expenses and debt plus your monthly income.
  2. Avoid tracking your spending by using credit cards. This is a bad habit to have. Using credit cards will eventually lead to owing large amounts of debt. Since the future is unknown, it is best to pay for most items with cash.
  3. Cash back. Avoid using cash back or rewards points credit cards. These are just a way to get your to spend more money than you normally would. Pay with cash instead.
  4. Create an emergency fund to cover monthly expenses for 9-12 months.
  5. Balance your accounts and write down every transaction, including debit card transactions and trips to the ATM.
  6. Reduce spending by 30-50%.  Spread spending for large purchases over several months to ease the burden. Buy more needs vs. wants. 
  7. Set short-term and long-term financial goals such as paying off a bill and saving for a down payment on a house.


  1. Pay down debt and get current on late accounts.  Keep debt (excluding rent/mortgage) at 15% or less of your net monthly income.
  2. Keep credit card balances at 20% or less of the credit limit.
  3. Pay more than the minimum monthly payment or credit cards and loans.
  4. Pay back student loans. Consider using student loan forgiveness programs.


  1. Pay bills online or setup autopay or paycheck deductions.
  2. Use direct deposit for paychecks.
  3. Open a checking account with overdraft protection.
  4. Save, save some more and save some more.

Estate Planning

  1. Create a will to begin setting up estate planning.
  2. Create a medical directive to identify your medical wishes.
  3. Buy life insurance if you have assets (car, condo/home, stocks, bonds, cash, etc.). This will ensure your family has enough money for your burial costs.

  1. Max out your tax advantaged retirement plans. Commit to saving a set percentage of your income, so when your income increases, your contributions will also increase.
  2. Control your risks through diversifying and investing in various mutual funds that are a combination or low, medium and high risk to limit your losses.
  3. Focus on long-term growth. Leave your money untouched for the next 5 to 10 years to see the benefits of your money growing.
4.      Invest as much as you can in tax-deferred retirement plans, such as 401(k) or IRA plan. Your money will grow faster and you can afford to invest more money because you won't have to pay taxes on the money until you retire.
5.      Once you have decided how much to invest in each type of asset, rebalance at least once a year particularly after a large market shift, upward or downward to ensure you remain on track with your retirement goals.

  1. Develop a support network (friends, family, church members, join support groups and a financial professional etc.) to get advice, support and encouragement.
  2. Think rationally and without emotion. Calm down and think logically about how to deal with your finances.
  3. Do not blame others for your financial mistakes. Take accountability and responsibility for your actions.
  4. Plan for the future and always have a plan A, B and C.
  5. Volunteer. Do volunteer work in your field. Ask for letters or reference that you can use to get your ideal job, which will help boost your annual income.

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