3 FINANCIAL MUST HAVES FOR ANY MILLENNIAL

For most Millennials, money is a concern and a huge creator of stress. The lack of money and basic financial security is a problem for many, especially those just starting their careers. With college debt, credit card debt, and lack of plan and vision, Millennials become accustomed to being broke and living paycheck to paycheck. They soon accept that as their standard and tell themselves that’s just the way things go.

Imagine a pill that can give you knowledge, experience, credibility, financial security, and most of all tons of money without any hard work. A pill you could just pay for online, and you wouldn’t have to put in any time or work into. Most Millennials believe such a drug exists. Because most Millennials subconsciously believe that having money is bad, and that since every other one of your buddies is in the same shoes, it’s perfectly okay to be broke.

As Grant Cardone quotes “Success is your duty, obligation, and responsibility” and you must take full ownership of it. My buddy — let’s call him Joe simply to save face — provides a poignant example of this connection. Everybody liked Joe, he was one of those guys who always appeared to be doing well. He drove a fancy car, wore nice clothes, owned an extensive watch collection, tipped heavily when he was out, and usually had a stash of cash in his pocket at any given moment. There was only one hitch: Joe was broke. He grew up in poverty, as I did, and was used to never having the money to buy what he wanted. Now in his early 30’s, Joe is still trying prove to himself and others that he’s no longer in the predicament he started in. Many times throughout our friendship, Joe promised himself he would get a hold of his finances, make himself an emergency budget, and maybe even start investing. He would make slight progress, only to find himself back at it again weeks later, living paycheck to paycheck with nothing to show for it. He was making good money, but was spending an even greater amount. Like many other Millennials, Joe invested so much time and energy in his hidden, compulsive need to look good in front of others that there was always little left for himself.

Don’t be like broke Joe. Read, create a plan, and start implementing it today. In a few months/years you’ll be glad you did.

1. 1. $1000 Rainy Day Fund

I got this concept from the very conservative, radical, yet wise Financial Guru Dave Ramsey. He explains that the first step to Financial Freedom is creating an emergency fund that will save you from financial ruin in case your car breaks down, you find yourself in the hospital or if you’re anything like my group of friends find yourself in sitting in Jail for drunken debauchery (totally kidding…not really.). It always seems like when you don’t have that money in place anything that could go wrong will. But for some reason when the money is put aside, you never seem to need it. And in case you do need it, your first priority above anything else is to replenish that $1000 for the next financial blow life throws at you. Now use your judgment for what an emergency truly is. Ok, most Millennials’ judgment is crap, so let’s make this clear: New clothing is not an emergency, neither is a date or the next music festival. Buy some goodwill swag, take that fatty to McDonalds and dance your ass off at home, until you’re in a place financially to enjoy these luxuries.

1. 2. Take Advantage of a Roth IRA and hopefully 401k

A Roth IRA and a 401k is like a gift from Uncle Sam to you. It’s like the bully that gives you so many wedgies, that for some reason when you’re birthday comes around it spares you of your misery. The Roth IRA is a retirement plan under US law that is generally not taxed, provide certain conditions are met. You don’t need to fully understand it; you just need to utilize it. Ideally you wouldn’t be a lazy bum and take a few minutes to read up on it as well. It might not seem like much, but one of your biggest expenses today is taxes. Uncle Sam likes to give wedgies. As of right now most of us could contribute up to $5,500 yearly to this program, and you should contribute every dime if you don’t want to be bagging groceries at Wal-Mart when you’re 70. Although $5,500 may seem like much, there is no excuse not to do it. I started investing in my Roth IRA when I was 20 years old, living in closet smaller than Harry Potters in a trailer, driving a 92 Ford Escort and making less than 25k a year. No excuses. Take Ownership. And for those of you fortunate enough to have access to a 401k, which is a tax-deferred program, provided by an employer that often times matches your contribution to a certain extent. This is simply free money that your employer is giving you. Take it.

1. 3.Real Estate

Regardless of what anyone may tell you, in current market conditions, with rental rates surging, down payment assistance programs at an all-time high, mortgage rates are at an all time low. There is no better time to buy a house. One of the benefits being young is that you’ll most likely share your living expenses with roommates, a girlfriend, or a craigslist pal (creepy). In most markets, the cost of buying will often be lower than the cost of renting, and in the process your home value will most likely go up. And most importantly, instead of handing your money over to a landlord, you will be slowly building equity. Something that a few years down the road you could sell for a profit, or rent out and collect cash flow. Buying a home might seem stressful, but by finding the right Real Estate Agent that will hold your hand in the process, you’ll not only get an education, but will be making a huge investment in yourself and in your future. Don’t combat this with the argument that you can’t afford a home, most of the time there is always a way to get you into a house with very or little money down.

Although not complicated, these steps will take hard work, perseverance and most importantly discipline. But you will find freedom through discipline, and start to kick in the door your destiny and snatch the key to the good life.

Until next time,

Lucas Pinto