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Millionaire Financial Advice For 18-35 Year Olds | Millennial Money

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This is my advice for everyone between the ages of 18 - 35 on how to manage their money, what to save, and how to invest - enjoy! Add me on Instagram: GPStephan

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First Mistake: Spending too much money
That’s why my #1 piece of advice, ESPECIALLY for anyone who’s 18 to 35 years old, is to SPEND LESS THAN YOU MAKE. I know, it might be common sense to you and I…but it’s not to common sense to a LOT of people. Especially when you consider that 40% of Americans couldn’t cover an unexpected $1000 emergency. So the EASIEST way to get out of that trap, is to simply: track your spending and cut back on discretionary expenses.

Second Mistake: Getting Into Consumer Debt
I really believe that having ANY amount of unpaid consumer debt will grossly hinder your ability to build wealth in the future. So if at all possible, avoid consumer debt AT ALL COSTS…use it only as a LAST CASE RESORT if you literally won’t have food on the table, or there’s something that happens and there’s just no other option.

Third Mistake: Lifestyle inflation
This is the practice in which we make a little bit more money, and then we start spending just a little more each month. The biggest issue I’ve seen is that people get used to spending almost all the money they make, and when that happens…they almost DON’T KNOW what to do when they have money left over at the end of the month….so then, they just continue spending it. And that’s where the problem lies.

Fourth Mistake: No Emergency Fund
An emergency fund is the money you set aside to ONLY be used in case of an emergency, where you have no other option to turn. Ideally, the size of this fund should equal anywhere from 3-6 months of your expenses, and kept easily accessible.

Fifth Mistake: Being Too Cautious About Credit With No Credit Card
Getting a credit card, and learning how to handle it responsibly, is so incredibly important to your financial future. Not only will a credit card provide purchase protection, rewards, or cash back throughout all of your purchases - but you’ll be continually improving your credit score, which will get you the best and lowest rates anytime you buy a property, finance a car, rent an apartment, or do ANYTHING that involves running your credit report.

Sixth Mistake: Not Contributing To Your Retirement
For instance, the BEST time to contribute to a Roth IRA is when you’re young and not earning a ton of money…this is because you’re in a low tax bracket already, so you have more money left over, and your money has more time to grow. Or a 401K allows you to reduce your taxable income and postpone your tax bill until retirement…not to mention that sometimes employers will match your contribution, dollar for dollar, up to a certain amount.

Seventh Tip:
Now is your time to absolutely pursue your career aspirations, work harder than you ever thought was possible, save every extra dollar you can. While sure, it’s fine every now and then to relax and have fun…stay disciplined, because if you play this right, you could use these your 20’s to accumulate enough investable assets to carry you forward for the rest of your life.

And during all of that, do your best to also focus on INCREASING your INCOME, just as EQUALLY as you are on SAVING IT. Sometimes people just can’t save enough money, and it’s not a fault of their savings or spending habits…it’s just the fact that they don’t earn enough in the first place.

And when it all comes to investing…just keep it simple. Broad index funds are the easiest, simplest, and “safest” investments out there when held long term. Or, it’s as simple as spending a few hours a day on BiggerPockets and YouTube researching how to invest in real estate - going and checking out open houses on Sundays - and then eventually looking into purchasing some income property once you have your down payment saved up.

Investing doesn’t need to be complicated, budgeting doesn’t need to be difficult, it’s all about learning the right financial habits early on and then sticking with them long term - and you’ll be on your way to a ton of millennial money.


💬 Comments on the video
Author

Here's my second channel for anyone who isn't already subscribed :)

Author — The Graham Stephan Show

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“Not spending money is like getting paid to not buy something.” I like that perspective!

Author — Ashley McDonald

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Graham pets Ramsey on camera so he can write off the cost of kitty litter

Author — Ross Campoli

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No bs talk like other "financial experts" on yt, killing it 🔥

Author — Dex Rock

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Graham: I’m all about the 4.99$ H&M tees.
Also Graham: *Prices his merch 30$ for a shirt* 😂

Edit: joke
/jōk/
Learn to pronounce
noun
a thing that someone says to cause amusement or laughter, especially a story with a funny punchline. For the people taking this to seriously, I understand why the merch is priced the way it is, I just personally thought it was funny and decided to comment.

Author — Christian Lemus

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Love the new high key lighting look graham!! Stick with it! And as always, thanks for good, free advice

Author — BeardTube

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All this free advice you’re giving, you have full on permission to ask me however many times you want in a video to smash the like button.

Author — Quentin Nelson

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Timestamps:
1:19 Spend Less Than You Make
4:18 Don't Get in Debt
6:39 Don't Increase Your Spending as Your Income Increases
8:17 Build Up An Emergency Fund
10:04 Build Credit History
12:05 Start A Retirement Plan
13:46 Work Really Hard During Your 20s
15:35 Invest In Broad Index Funds
Oh and also smash the like button! Hope this helps guys.

Author — Jackson Taylor

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Graham can you make separate videos about:

1. Investing in Real Estate
2. Intro to Stocks

As a millennial I’m so lost.

Author — Tanae Bailey

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How did I just realize the comedy gold of naming your cat Ramsey...

Author — Andrew Masters

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I personally love getting caught off guard by the "Smash The Like Button! 😤💯

Author — Jose Sixx

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Graham has gotten so frugal that now he's making shirts out of his old bath towels. Genius.

Author — Million Journeys Finance

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my biggest financial mistakes in my 20's were: lifestyle inflation, spending more than i make (carrying credit card debt), buying starbucks 3 times a day, 5 days a week, eating out 3-5 times a week, financing cars both buying and leasing, and not saving and investing. i was a hot mess.

Author — red sun

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Screw those guys and anyone else that is getting offended by those super perfectly timed ques to "Smash the like button!" I happen to find the timing on them spot on and hilarious but hey, I smash the like button before the video even starts. Thanks for sharing as always Graham.

Author — JOAT MON

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"you're investments may be falling at a time where maybe you need it most... a recession happens and the stock market drops 30% in price"...

Talk about solid advice that stands the test of now a pandemic too!!!

Author — Michael Bird

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I’m 15 working to make enough to invest when I’m 18, every time I get paid I buy 5$ worth of items to stop that urge to use the money, I get the urge out and then the urge stops🤷‍♂️ after that I just save and it works for me.

Author — Johnny Sins

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Hey Graham, how about making a video based around living and budgeting on minimum wage.

Author — cwvowel

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Every time I think about buying anything now I always think what would graham do and 9 times out of 10 I end up not buying that thing and just saving and or investing that money

Author — Rommie Abdelnour

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I was 35 when I discovered that you can carry on the credit card debt over 1 month :) I always thought it was to be paid at the end of the month, no matter what... I guess that helped not to know it

Author — Vincent A

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I'm a millennial saving a minimum 50% of my income. I'm paid weekly. I deposit 2 into my checking and 2 into my savings (some months I get a bonus check into savings).

Author — D J