Millennial Money Tips: Save & Invest

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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!

1. Something to Save - Tips and strategies for saving money

2. Something to Invest - Investment opportunities and strategies

3. Something to Read - Curated relevant publications, including social media posts and news articles that appeared this past week plus engaging books

4. Question of the Week - What financial habit has made the biggest positive impact on your life?

5. Follow-Up in the Next Issue - Reader Responses to Last Week's Question.

6. Book of the Week review

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:

1. 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.

2. 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.

3. 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!

4. 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.

5. 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.

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./

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.

Get started

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

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

• Millennials Want To QUIT The Rat Race!

• Navigating Financial Freedom for Millennials and GenZ with T.J. van Gerven

• Why Millennials and Gen Z Are NOT Having Children

• 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

• Millennials Are Lonelier Than Ever

• 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

• Best Finance Podcasts for Millennials

• Affordable Home Buying Strategies for Millennials

• 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

• Millennials Are Causing A “Baby Bust”

• Why Wait? Millennials Choosing the “Retired” Life in their Middle Years

• Trump Wants To Eliminate Income Taxes: Here’s How Much the Average Millennial Would Take Home Annually

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:

1. Track your spending using apps like Mint.

2. Set a weekly budget for non-essential items.

3. Automate your savings.

4. Use cash-back rewards programs.

5. 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.

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