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JOHN AND PAUL LOOK AT “9 THINGS MILLENNIALS DON’T UNDERSTAND ABOUT MONEY” FROM THECOLLEGEINVESTOR.COM AND GIVE THEIR THOUGHTS.
- Millennials don’t always know they’re in debt.
- While this is hard to believe, we can see situations where college students don’t know what they’re getting into when they sign up for student loans.
- It’s extremely important to pay off these student loans as fast as possible.
- Check out our episode on student debt with Jordan Clemons.
- Millennials don’t know how to repay their student loans.
- Millennials don’t understand their health insurance options.
- We can definitely understand this one – there is typically little guidance on choosing health plans when you sign up.
- Paul advocates enrolling in a high deductible health plan and supplementing with an HSA (Health Savings Account).
- John has always been a fan of being a little more conservative with health insurance and chooses a middle plan for just in case he gets sick.
- Learn more about health insurance here.
- Millennials don’t know how to handle their bills.
- We advocate auto-paying all bills you can (just make sure you review the bill first to make sure it’s okay and that you have enough money in your bank account).
- Anything you can’t automate, make sure you pay it off as soon as possible so you don’t forget.
- If you do have to pay late, many companies will waive the late fees if you ask and it’s your first time paying late.
- Millennials don’t understand the power of compound interest.
- The biggest advantage you have as a millennial is time!
- The interest you earn on your investments today will also keep earning interest.
- The Rule of 72 – divide 72 by your expected interest rate to get how many years it will take for your investment to double.
- For example, if you expect an 8% annual interest rate, your investment will double value every 9 years (72/8).
- To learn more about compound interest, check out our previous episode.
- Check out this article from Business Insider to learn the importance of investing at age 25 vs. age 35.
- Millennials don’t understand the history of money.
- The article claims millennials are too scared to invest.
- We actually disagree and feel as if many millennials are a little too bullish, as they most likely started investing after the stock market crash.
- As long as you have a long-term outlook on investing, the U.S. economy is practically guaranteed to grow and you will make money.
- You never know when the next recession will hit! So invest now!
- You can’t time the market.
- The best time you can spend today is to check out our episode on the economy and investing with Keith Blakely.
- Millennials don’t know how to do their own taxes.
- John believes if you are a W-2 employee and have minimal investments, you should prepare your own tax return to save money.
- If you have more investments or freelance income, you should probably hire a tax preparer as your return will be more complex and you could be missing out on deductions, state and local filing obligations, or planning opportunities.
- John believes if you are a W-2 employee and have minimal investments, you should prepare your own tax return to save money.
- Millennials don’t understand the importance of follow up.
- Make sure if you move you don’t lose track of any bills.
- Millennials don’t know how to negotiate.
- If you think you’re worth more, be sure to negotiate your salary.
- John is a prime example – if he trusts you he’ll assume your price is fair (and vice versa).
- Paul tells a story of how everything is negotiable in China.
- At the end of the day, it all depends on what you’re purchasing and how much you trust the other person.
SPECIAL SHOUTOUTS AND SHOW NOTES:
- Kyle Elmore – White Picket Real Estate (check out his episode) for providing the wine on today’s episode.
- Velvet Devil Merlot
Have any topics you want to be covered or amazing people you’d like us to interview? Let us know! You can email us at info@drunkenmoney.com. You can also find us on Facebook, Instagram, Twitter, and Linkedin. Please be sure to subscribe to our weekly mailing list at drunkenmoney.com/subscribe.