Millennials have a great opportunity now to use their long time horizon to prevent money mistakes. See these common mistakes below to stay ahead of the game.

Not living now

You can’t take it with you when you’re gone. This mistake doesn’t just pertain to retired folks. There are many millennials who pitch every penny while watching their most valuable assets slip away. Youth! Don’t let youth be wasted on the young. With a proper budget you can find ways to save for your long term goals and have enough to spend on your short-term goals. I don’t want you to get to 50 years old and say you regret not doing this or that. If you make a plan and your short-term goals fit then I want you to spend money on it and not feel guilt. That is the point of a plan. Accomplish your goals and know you’ll be ok. Don’t wait to take that trip of a lifetime or learn how to cook. Chances are you won’t have the time or energy to do it later in life.

Living too much now

Live within your means. I’m not saying to live a mundane life but at least know what you can afford and what will actually bring you happiness. A fancy car is the perfect example. When I encounter cash flow issues, my first place to look is the client’s vehicle. Most people believe that having a nice car will change the way people perceive them but in reality that car sits in a parking lot or driveway for most of the time you own it. The perception people create for you is made by you and how you make people feel. Buying too much car, house, or other expensive object will not make you feel better in the long run. Having enough money to buy your freedom earlier in your life will make you feel better for a longer period and provide peace of mind that you can’t put a price on.

Not thinking of taxes for every move

Almost any financial transaction you can do has some form of tax ramification. Without some form of education on taxes you could miss out on a tax benefit or create a major burden that will shock you come tax time. Taxes are always an after thought when constructing a portfolio or trading assets. You should move that thought to the front of the line and ask “how will this impact my taxes?” every move you make. Or hire a CFP ® or tax advisor.

Not protecting your income

Feeling invincible is a part of being young. This is why most millennials are underinsured. Even if you have a desk job, you can still get injured in a way that prevents you from working and producing an income. Disability and life insurance premiums are a small price to pay to make sure a portion of your income is covered in the event of an accident.

Small business owner misconception

Many small business owners make a major mistake throughout their careers by assuming they don’t need to save because they can just sell their business and that will fund their retirement. The facts sometimes vary but about 20-40% of business ever actually sell once brought to market. There are many reasons most businesses don’t sell. If there isn’t a demand/market for your business, then you could be learning very quickly that you will have to work for many more years trying to create a nest egg. Building retirement savings that late is problematic just in the fact that you lost the years of compounding returns you could’ve had and you most likely will have to downgrade your lifestyle by a large step.  The lesson here is to always save for retirement even if you believe your business will sell. Don’t let exceptionalism put you in a difficult position leading into the years that your mind and body will have a tough time to keep the business floating.

Fiduciary Mission

At Integritas Financial, we are committed to providing fee-only, fiduciary financial planning services that are tailored to the unique needs of young professionals, particularly millennials. Our experienced planners work with you to develop customized financial plans that address key areas such as estate planning, trusts and wills, retirement, workplace benefits, education funding, student debt, and buying a house.

We believe in transparent, client-focused service that puts your financial goals at the center of everything we do. As a fiduciary firm, we are dedicated to acting in your best interests, and we never sell products that charge commissions to clients.

Our goal is to help you achieve a stable and prosperous financial future by providing comprehensive financial planning services that are tailored to your individual needs. Whether you're just starting out in your career or you're already well-established, we can help you navigate the complexities of financial planning and create a roadmap for success.

Ryan@if-money.com