Money Moves for Millennials
A Guide to Not Being Broke Forever
You've probably heard the usual spiel about avocado toast and how you should've bought a house with your first paycheck. But let's get real. Here's a guide that won't make you want to swipe left on your financial future.
Step 1: The Emergency Fund - Because Life Is More Unpredictable Than Your Ex's Mood Swings
First off, let's build an emergency fund. No, not for those "emergency" 3 AM pizza cravings (though, valid). Think more like job loss or when your car decides to live its best life in the mechanic's shop. Aim for 3-6 months of expenses. This isn't sexy, but it's the adult version of having a parachute when life decides to throw you out of the plane.
Step 2: 401(k) Match - Free Money, Not Like Your Cousin's MLM Scheme
If your job offers a 401(k) match, contribute enough to get that full match. It's like your employer saying, "Here’s some free cash because we love you." Don't leave that on the table unless you're into leaving money on tables (weird flex, but okay).
Step 3: Pay Off High-Interest Debt - Because 20% Interest Rates Aren't Cute
Credit card debt with interest rates that could rival a rocket ship's speed? Get rid of it. It's not as fun as swiping for that designer bag, but your future self will thank you when you're not still paying for last year's fashion by next decade.
Step 4: ESPP - Because Who Doesn't Love a Good Discount?
If your company has an Employee Stock Purchase Plan (ESPP) with a sweet discount, jump on it. It's like buying your favorite band's merch at a concert, but instead of a t-shirt, you get stock. Just remember, don't put all your eggs in one basket—or your entire 401(k) in one company's stock.
Step 5: HSA - Health Savings with a Side of Tax Benefits
If you've got a high-deductible health plan, an HSA is like the secret menu at your favorite coffee spot—everything is cheaper and better. Tax-free contributions, growth, and withdrawals for medical expenses? Yes, please!
Step 6: Pay Off Medium Debt or Invest - Choose Your Own Adventure
Now, you're at a crossroads. Pay off that car loan or start a taxable brokerage account? It's like deciding between binge-watching your show or starting a new one. Both can be rewarding, but one might give you more freedom sooner.
Step 7: Roth IRA - Your Future Self's Retirement Fund
Put money into a Roth IRA now, and it grows tax-free. It’s like planting a money tree in your garden; you water it now for shade and avocados (metaphorically speaking) later.
Your financial journey doesn't have to be all spreadsheets and no play. With these steps, you'll be well on your way to financial zen—or at least, not as financially zenless. Remember, the only thing broke should be your record for saving money, not your bank account.
