What Debt Should Millennials pay off first?

Being in debt can be a very scary feeling. Always feeling like you are behind, and never able to get ahead. Student loans, Car payments/repairs, hospital bills, credit card debt, the list only goes on and on. One big question I hear a lot is: what debt should I pay off first? There are a few basic rules I have when it comes to paying off debt.

#1 ) If a debt payment is approaching  being late for 90 days this takes top priority. Continue reading What Debt Should Millennials pay off first?

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You’re probably overpaying for your cell phone

No matter how much you cut expenses, there is a 99.9999% chance millennials will have a cell phone. And there is a very good chance you are paying a premium for your cell phone coverage. Verizon, T-Mobile, Sprint, and all the other big companies charge people crazy amounts of money despite their advertisements on how great they are.

An example of this, my girlfriend (prior to dating me) was paying $107.42 a month for her cell phone. She received unlimited texts, calls, and internet (up to 3gb at full speed). This also included a $25 a month charge for her phone. Essentially she was paying $82.42 a month for her phone coverage. Nearly $3 a day! Continue reading You’re probably overpaying for your cell phone

5 Ways to Save Money on Coffee in 2017

Saving more money is often a new year resolution for millennials. Coffee is one area to easily save money. Despite being one of the cheapest things to produce, plain old coffee gets real expensive, real quick. I’ve never been able to figure out adding some milk and a couple pumps of syrup makes the price of coffee shoot up so much. Here are my five biggest tips for saving money on coffee, without having too sacrifice much.

#1) Buy whole bean coffee and grind it in the store

Continue reading 5 Ways to Save Money on Coffee in 2017

Prioritizing Your Spending

I saw this picture on social media, and it struck a chord with me. In just a few sentences it explains that by prioritizing what you spend your hard earned money on can make the difference between seeing the world, or staying at home.If traveling isn’t your forte, then perhaps between you and the next gadget you desire.

People spend way too much money on many things:

  • Clothes
  • Eating Out
  • Coffee
  • Alcohol
  • Cell Phones
  • Cars
  • the list goes on and on

Continue reading Prioritizing Your Spending

The WORST 401k mistake Millennials make

It is no secret that when Millennials retire social security is either going to be entirely gone, or drastically different than it is today. This means individual retirement planning is more important than it has been for previous generations. Most companies offer a 401k as one of their benefits. In essence, a 401k plan is a retirement contribution plan where employees can make take a portion from their paycheck and put it in a retirement account on a pre-tax basis. I’m always surprised when I talk to people about their retirement plan, and they don’t understand some of the basic features of their 401k or 403b.

The biggest mistake millennials make when contributing to their 401k plan is NOT TAKING ADVANTAGE OF THEIR EMPLOYEE MATCH PROGRAM. The overwhelming majority of companies offer to match a certain percentage of what you put in. As of 2013, the most common matching program was 100% match for the first 6% you contribute. Meaning if you opt to have 6% of your pay into your 401k plan, the company will match that and add an additional 6% to your plan. Even if the company you work for is not as generous in this realm, another common standard is 50% match for the first 6% you contribute. Continue reading The WORST 401k mistake Millennials make

Why I don’t drink coffee from Starbucks

Millennials and coffee go together like macaroni and cheese. In college I worked at a coffee shop for about three years, and I was constantly amazed at how much people were willing to spend on coffee. Every single day. However, buying coffee from a big coffee chain on a daily basis is a huge waste of money. It doesn’t matter if it’s from Starbucks, Dunkin Donuts, Peet’s, or any other coffee chain. From a financial standpoint coffee is similar to or even more expensive than buying a pack of cigarettes a day.

Let’s do some math. Let’s say on average you spend $5 per coffee, and you get it about 6 times a week. So you spcoffee1yearend $30 a week on coffee. This doesn’t sound like a lot, but it adds up quickly. $30 a week x 52 weeks is $1,560 a year. Ok, so this amount of money won’t make you rich. But what if instead of buying coffee from Starbucks you invested that money, what would that do for your financial future? Continue reading Why I don’t drink coffee from Starbucks

The Goal

Millennial Out Of Debt is a simple concept. I want to provide quality tips, tricks, and knowledge to help my fellow young adults become financially independent. By financially independent I mean a number of things: getting out of / staying out of debt, understanding how to budget, saving more money, and the ability to make informed financial decisions. All without sacrificing quality of life.

This blog will chronicle my personal journey to financial freedom. Please feel free to reach out with any questions, thoughts, advice, or if you would just like to connect.

Best,
Ricky