Simple Concepts All Millennials Need to Know


That magical time when you are in your 30’s and you have it all figured out right? Well just in case you don’t here are some money tips you need to know so you can get your finances on track when you reach your 30’s.

1. Stop overpaying rent

Many millennials are using too much of their income on rent. Aim to pay 30% of your annual earnings or less in rent; a lot of millennials are paying almost 40%. If you are having trouble finding decent rent, find a friend who is having the same problem, and find a place to split the costs with them.

2. Be responsible with your credit

After college, many young people tend to get bombarded with credit card offers, but you are usually better off skipping them. It is easy to spend now with plastic, but so much harder to pay later. Build your credit score with one card by making small, recurring monthly payments to make sure that you do not overspend. Frankly, if you take on too much credit card debt, especially on top of student loan debt, it is very easy to fall behind, so be smart with your spending.

3. Set up an emergency fund

I typically recommend saving 3-9 months of your monthly expenses in an emergency fund. That will cover most unpleasant surprises, such as a big car repair or a trip to the emergency room. Also, set up automatic contributions into your bank account, this way you never see it and it and will not second guess it. Lastly, think about living on 85¢ of every dollar you earn.

4. Student loans should not hold you back from saving

Most federal lenders give you a six-month grace period after graduation before you are expected to start repaying your student loans.
Deferment allows you to avoid payments on federal student loans while in school, serving in the military, or while looking for that first job, yet Interest accrues on all of those loans. If you are in a repayment plan, investing in your 401(k) can actually lower your monthly payment. Again, make sure you set up automatic contributions to make saving easier.

5. Do NOT undervalue yourself

Most first-time job seekers do not negotiate salaries, and many people expect that if they do a good job, their boss will recognize it with a promotion.
It is important to research the salaries that are being offered by comparable positions. This will help you aim for that price, and it will help you bargain with your employer.

6. .Check your credit

If you are just establishing credit, or if you frequently change your address, it is important to check your credit report. The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months. To order, visit

7. Start Using Coupons

Many millennial spend too much on coffee, cocktails, and restaurants without ever focusing on the cost. There are many sites available for you to perform a quick search before you go out, such as Groupon,, Travel and Living Social. If you take a few minutes to do a search for potential money-saving coupons before you go out, you can sometimes save as much as 50%.

Here is where you should try to be presently:

In Your 20’s

  • Learn about money
  • Live below your means
  • Open a Roth IRA (if you qualify)
  • Build credit
  • Learn your credit score
  • Have an emergency fund
  • Get health insurance

In Your 30’s

  • One year of  your salary saved
  • Pay down non mortgage debt
  • Started saving for a down payment on a home
  • Get life insurance (The right kind)
  • Have a professional financial plan
  • Contribute to a retirement plan
  • Create a will
  • Start kids education savings (if a parent)

For any questions or comments  Contact Me   16261450-three-road-signs-pointing-to-spending-saving-and-budget-to-symbolize-budgeting-and-savings-in-your-p2-150x150


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