10 Money Mistakes Millennials Should Avoid
No. 10 Is a Shocker!
Many millennial households are on their way to building substantial wealth. They are saving 20% or more of their paychecks, investing in 401(k) accounts, and keeping their debt levels low. But others, even those with good educations and solid careers, are making financial mistakes. And some are making them over and over, digging a hole from which it may take years to climb out.
Millennials can help themselves over the long term by avoiding several key errors. As a wealth adviser by trade, and more importantly, as someone actually of this generation who has personally gone toe to toe with many of the financial challenges often faced by millennials today, here are the 10 most common millennial money mistakes I’ve witnessed:
Mistake No. 1:
Failing to Consider the Financial Consequences of Student Loans
Many people want to attend a prestigious university or earn a specific degree, but will this decision enable you to earn enough money to justify the expense? Too many people sign up for mounds of student debt without considering the financial magnitude of their monthly debt payments and the length of those payments versus their expected incomes.
Anyone considering a second degree, a master’s degree, or a doctorate should determine before borrowing money if the new degree will generate enough additional earnings to justify the expense.