Tag Archives: millennial

Here’s What Saving 1% of Your Paycheck Could Do…

Saving money is difficult. Even saving 1% of your paycheck can be a challenge. However, this percentage can have a huge impact on your ability to retire or become debt-free.

For example, let’s say you are 25 years old, make $40,000 a year today, and never get a pay increase from that salary. 1% of that would be $400 a year / $33.33 a month / $7.69 a week. To save this amount it could mean eating out one less time a week, skipping buying a few articles of clothing a month, skipping one night on the town a month, or many other options.
So, instead of spending that one percent of your paycheck you invest the money in the stock market.
On average the stock market has a return of 8% per year, or 10% if you
reinvest the dividends. Dividends are a sum of money paid regularly (typically quarterly) 1 percent returnby a company to its shareholders out of its profits (or reserves). Assuming you get a 10% return on your investment, by the time you are 65 the 1% you save monthly would be worth roughly $195,000. All from 1% of your paycheck. Continue reading Here’s What Saving 1% of Your Paycheck Could Do…

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8 Things From Warren Buffett Young People Should Know

Warren Buffett is arguably the greatest investor of all time. One thing that separates Warren Buffet from others is his down to earth approach in life, investing, and business. He is full of great quotes that can relate to millennials. Below are 8 quotes by Warren Buffett that millennials should know and follow.

# 1 “Never ask a barber if you need a haircut.”

tumblr_o734v4kkyl1rka5ueo1_500This might be my favorite Warren Buffett quote of all time. In this situation the barber will always say yes. Even if you just got a haircut 3 days ago. The barber only makes money when people get their haircut. It’s important to take what professionals say with a grain of salt in order to better understand how they are compensated, and how much that is effecting what they are saying. Continue reading 8 Things From Warren Buffett Young People Should Know

How to Start Investing in the Stock Market

Investing in the stock market is an intimidating thing. Many millennials are told to start investing while they are young – this ensures your investments have time to grow over your lifetime. However, just getting started in investing can be extremely difficult.

There are multiple ways to start investing, such as opening/starting an IRA (individual retirement account), or joining your companies 401k/403b plan, but for the most freedom you will want to open a brokerage account. A brokerage account allows an investor to deposit funds with the brokerage and place investment orders with those funds. Continue reading How to Start Investing in the Stock Market

The WORST Day for Millennials to Start Investing

Tomorrow. Tomorrow is the worst day to start investing, let me explain.

One of my favorite quotes from Warren Buffet is “Never depend on a single income. Make investments to create a second source of income.” You want the money you are able to save to be put to work, ultimately increasing in value.

Continue reading The WORST Day for Millennials to Start Investing

Experiment: Saving 58% of my paycheck for a month

I’ve seen a few posts online about people experimenting with frugal living. Most articles suggest the person should attempt to save 50% of their paychecks for a month. I have always been tempted to try this, but have never done so. Until now! I feel like I do a pretty good job with saving money already – on average saving roughly $1,000 a month. However, I want to save more. That’s what lead me to crunch some numbers to see how much I realistically could save in a month. The number I got was 58% of my income after taxes .

My fixed expenses for a month include:

  • rent
  • student loan payments
  • internet
  • phone
  • gym
  • childcare

Continue reading Experiment: Saving 58% of my paycheck for a month

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?

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