Tom from FIREd Up Millennial is sharing some great financial tips in this interview. Learn what financial habits you need to get on the path to financial independence. Why you should be investing while paying down student loans. Plus lots more!
I've got a great interview for you with Tom from FIREd Up Millennial. Tom's an up and coming blogger who's sharing his journey to reach financial independence with us. Check out his blog and enjoy the interview!
What are your favorite books related to money?
To be honest, I haven't read too many books about money. Of the few I have read though, I often recommend Rich Dad Poor Dad, The Intelligent Investor, and Learn to Earn.
What are your favorite apps related to money?
I have tried a few different apps briefly, but the only I use today is Mint. It was the first I ever used (so maybe I prefer it just because I was the most used to it) but I think it integrates my bank/investment accounts well and shows me what I need to keep track of my money. I actually use Mint in conjunction with my own personal budgeting spreadsheet and it helps me keep track of my money and spending.
What is the worst money advice you hear?
While there is tons of bad advice out there on the internet, but one thing specifically grinds my gears. People often suggest focusing all attention on paying off student debt before worrying about investing. I understand why people want to do this; having debt can cause anxiety and other issues but I think financially it doesn't always make sense. I recommend that borrowers with student debt don't completely ignore investing while paying off debt (assuming they have some extra money left over after paying the minimum payment). This is especially true for borrowers with relatively lower interest rate federal student loans. If the expected rate of return on investing is higher than the interest rate on the student loans, it makes sense to invest alongside paying down debt.
What money advice would you give a 25-year-old starting out in life?
Set up a budget and start tracking your money/net worth once a week. As I mentioned earlier, I use a spreadsheet to track my cash, investments, debt, and previous week's spend. Each week I sit down for 15 or 20 minutes and update my spreadsheet with this info. It helps me see where I stand financially and helps me make sure I am on track to hit my financial goals.
Do you have any financial habits you live by?
I guess the only thing I would say is that I try to consciously consider if every purchase I make is absolutely necessary.
What is #1 thing people should do today for a better financial life?
Find a method for tracking your finances that you can stick to and that will help you achieve your goals.
Did you overcome any personal failures to get where you are today?
When I first graduated college, I had a good amount of student debt and was racking up credit card debt (without even realizing it). It took me almost a year to realize the hole I was digging myself in before I came up with a plan to climb out.
What was the turning point in your life to become financially successful?
Making a payment towards my student loans just to realize that it was basically canceled out by the credit card debt I was racking up.
What is the most worthwhile investment you have ever made?
This may sound cheesy, but I think the most worthwhile investment I have made is in my own financial knowledge. As discussed above, after college, I had little knowledge about personal finances and really struggled with money. Once I realized I needed to make a change, I spent a good 6 months reading books and blogs about personal finance, investing, and everything else related to money.
How can people follow and get in touch with you?
If you love what you're reading, please help me spread the word and share this post with the share buttons on the left!
CREATOR OF LET'S AUTOMATE YOUR MONEY WITH MY LOVELY WIFE KRISTA