We’re ready to help you with some more financial management! Another step in your journey should be investing. You need to be thinking about building your wealth when you are planning your financial future.
On today’s episode, we will be talking with Erin Lowry about investing. She will provide insight and practical ways on how we can all be investing.
Erin runs an awesome platform called Broke Millenial and she wrote a book titled The Broke Millenial Takes on Investing. She has a ton of great information to share on which path you should take in your investing journey.
The Broke Millennial Concept
Broke Millennial is a website that spun off into a book series. The first book is Broke Millennials: Stop Scraping By and Get Your Financial Life Together. It includes all the 101 one stuff you need to know. Everything from the basics of budgeting and credit scores all the way through how to get financially naked. Also, there’s information on how to talk with your friends, buying a house and the basics of investing.
Book number two is Broke Millennial: Takes Out Investing, A Beginners Guide to Leveling Up Your Money. It’s for a true beginner, you do not need to know any investing terms to pick this book up and get educated on some investing basics.
Why Should You Be Intentional About Investing?
You may think that you are younger and there is no reason why you can’t wait until later on in life to invest. You should take advantage of the compound interest of the time that you do have on your hands. The fact that time is on your side is the very reason why you should invest now. The more interest you can get on your investment will be better for you in the future.
Just putting money into a savings account isn’t enough, because the interest rate is so incredibly low. When you are investing you earn a better return on your money than just simply saving money in a savings account. When you invest, your money does some of the heavy lifting for you. If you don’t invest you’ll have to save so much more money than you would if you had just invested your money.
Why Start Early?
One factor to consider is taking advantage of compound interest for a longer period of time and you’ll be able to see it growing quickly. The other thing is that you can weather the ups and downs of the market better. It’s going to go up and it’s going to come down. It’s unpredictable and it happens.
So, when you’re younger you can take a little defeat when it comes to the market and still come back with a better return than you could when you start later. Doubling down into how much money you’re contributing later in comparison to someone who started at around 25, still may not allow you to catch up to where you could have been.
Misconceptions About Investing
You’re probably thinking, I’m young now and you can start investing when you get your life more put together. That could mean anything from you paying off your debt or getting a better paying job, but life doesn’t get less complicated as we age. If you think about it, by that point you’re probably going to get married, maybe buy a house and start a family.
All of those things are great, however, they can turn into some expensive things. So, just because you’re in a more secure financial situation in terms of less or no debt with a better salary, doesn’t mean that you’ll have a whole lot more of a discretionary income to put into the market. This is why starting early and being consistent is the way to go.
As a bonus to our listeners, Erin is offering access to her 30-Day Rookie Investor Action Plan for anyone who orders the book. The Action List is a downloadable a day planner style PDF that gives one small, actionable step to take each day to push you towards becoming a more confident investor. Email proof of purchase to info@brokemillennial.com
with “His & Her Money” in the subject line to claim your Action Plan.
WHAT YOU WILL LEARN IN THIS EPISODE
- Why you should be intentional about investing
- Why it’s important to start investing early
- Savings account percentage rate
- Where you should have your savings account
- Investing for Retirement
- Student Loans and Investing
- Advice on what to invest in with 401K
- How to discuss investing with your spouse
- How to begin investing and what to invest in
- What risks you should take when investing
Resources Mentioned
- Erin’s website: Broke Millennial
- Broke Millennials: Stop Scraping By and Get Your Financial Life Together
- Broke Millennial: Takes Out Investing, A Beginners Guide to Leveling Up Your Money
- How To Avoid Becoming a Broke Millennial with Erin Lowry
- Everything You Need To Know To Find The Right Online Bank Account with Erin Lowry
