I follow several YouTube Channels that have to do with investing. Some deal with retirement, others are for trading, and some are even in the cryptocurrency space. One that I feel has a lot of great information for the generation right behind me, is Millenial Money. Follow that link to their channel if you want to consume their info. Today I have a video for you that I found very informative, and it has to deal with money moves millenials can make to get ahead, right now. Six of them.
What Should You Do With Your Money in Your 20’s?
Shannah: Hey I’m Shannah Game. This is your millennial money and today we’re talking these six smart money moves you should make in your 20’s. Now when you’re in your 20’s, you may have your first job or maybe you have your second job but you’re just starting to get established and there are lots of things to think about. Lots of life things to think about, relationship things to think about, but you should also be thinking about your money.
Let’s start with number one, your credit score. Now I know this is some funky word that you’ve heard but you have no idea what this means. everybody has a credit score. If you have a credit card, you have a credit score. Credit scores range from 300 to 850 and the highest number wins, so the better your score, the better interest rates you’re going to get. When you go to buy a car or buy a house or anything like that, you want the best credit score possible. I say aim for 720 plus. That’s where you’re going to get the best interest rates. If you’ve not checked your credit score this year and you have no idea what it is, pause this video right now, go check your credit score and then come back to know the rest of the tips.
Number two, credit cards. I know you’ve heard from a million people don’t get credit card debt and I’m going to tell you don’t get credit card debt but have a credit card. It’s the smartest thing you can do because you can earn cash back and rewards and all sorts of things that are like money. They’re like gold to you. If you want to take vacations, you want to buy something on Amazon, whatever you want to do, these things pay off. Go to a great site that I love, cardhub.com and you can find out about all different credit cards.
Number three, start investing. Everybody wants to run out and start investing in the stock market but before you do, please do some research. Get knowledgeable on it. Know what you’re doing before you go and lay out your cash on some stocks. Practice makes perfect with investing. A great site is sprinklebit. This site lets you actually create a mock portfolio with fake money so you can see whether you’re going to do good or not so good and then make adjustments.
Number four, high-yield savings account. Now this is different than the savings account that you have at your bank. Why? Because these are online banks, and because they’re online, they can offer you a much better interest rate and this is what you want. Again, the more interest, the good kind of interest that you can get, the better off you are. So go to my friends Ally Bank or Capital One 360 and sign yourself up for a high-yield interest account.
Number five, everyone has student loans. I mean it costs hundreds of thousands of dollars now to go to college so you’re not alone, but you got to figure out the best strategy for them. The best thing to do is to refinance them if you can. There’s a great company called SoFi which offers lots of refinancing options. You can also go through whatever bank you have your student loan but make sure you pay attention to a few things. Often when you refinance, you’re going to stretch out the time of the loan from ten years to maybe even 30 years. This is great for your monthly payment but really bad for the amount of money you’re going to owe so just make smart decisions with this, but it’s not a bad idea to refinance them.
Other Suggested Reading: Kevin O’Leary’s Advice for 20 Year Olds.
Last student discounts. Yes I know, you’re not a student anymore but that’s okay. You can still take advantage of the discounts. Go to your school’s credit union, Alumni Association, or even places like Triple A where you can get lots of discounts for just being a student at that University. I can’t think of a better way to actually make them pay you back for some of the money they’ve got for you going to school.
Tell us in the comments below which money move you’re going to make first. Thanks so much for watching. Please subscribe to our YouTube channel and we’ll see you back here next week.