Jacob Gottlieb recently addressed the economic outlook for millennials. He agrees, as some experts do, that those individuals in this age group are facing some unique challenges. However, he has sound advice for the millennials. Jacob is optimistic that some of the negatives pertaining to their financial future can be overcome with some planning. He has shared tips for young people that make good financial sense.
His thoughts when it comes to home ownership are positive. Home ownership continues to be a good investment. Jacob Gottlieb advises millennials to purchase a home that they can afford. They should not look to overspend and tie up too much of their assets on the purchase of one home. As a general rule, Jacob suggests that the amount of money spent on a home should not exceed 2.5 times the amount of their gross income. This ratio will help millennials to spend only what is within their means.
Dedicate a certain percentage of income to savings. Mr. Gottlieb advises young people to set up a budget for themselves and stick with it. It is important to develop a plan for saving money for the future. Begin to build a nest egg by saving at least 15% of income. Taking this sensible advice now will help provide for a more comfortable retirement down the road.
If their employer offers a 401k plan, the millennial should be making regular contributions by the age of 25. With an employer sponsored 401k plan, the money will be taken directly out of the paycheck on a gross basis. There are other options to consider if the employer doesn’t offer a 401K plan. A certain amount of money can be deposited every year into an IRA, or as Jacob also recommends, look into a Roth IRA as well.
Another valuable tip is to pay off all student loans as soon as possible. Budget as much as possible to completely eliminate student loan debt. As is the case with other types of loans, a millennial can save thousands of dollars on the interest by shortening the term. Additionally, when the payments are finally finished, there will be more money left over to allot to other financial goals.
Make sure to take advantage of every tax deduction for which you may qualify. Jacob Gottlieb advises millennials to learn as much as possible about applicable tax deductions and the ever-changing tax laws. He suggests using a professional advisor at tax time. He also suggests that they should learn as much as they can about financial matters and to keep learning. It will make for wiser investment choices over the years.
Another financial tip is to pay bills ahead of time to avoid late fees. One or two payments inadvertently overlooked can be costly in terms of finance charges and late fees, not to mention the negative effect it can have on credit scores. When the time comes to apply for a mortgage or other loan, a higher credit score will secure a lower interest rate.
A characteristic of financially successful people is that many look for sources of passive income to grow their wealth. There are opportunities available that do not require much effort, and they can result in a stream of extra income for everyone comma including millennials. Jacob has been in the financial sector for decades. He has worked with many clients to help them achieve their financial goals. He recently launched a new boutique firm. His new position is as Chief Executive Officer of Altium Capital. The firm, located in New York, focuses primarily on investing in growth companies