<a href="https://www.businessinsider.com/master-your-money"></a><iframe width="560" height="315" src="https://www.youtube.com/embed/sYPWsulkJl4" frameborder="0"></iframe><ul class="summary-list"><li>Insider surveyed over 2,000 millennial investors about their financial strategies.</li><li>Successful investors seek advice from trusted sources, do lots of research, and make investments that align with their social values.</li></ul>

Experts share advice on how to thrive with long-term investments

<a href="https://www.businessinsider.com/master-your-money"></a><div type="image" title="master your money live digital bootcamp" height="818" width="1858" msid="79373081" hostid="261"></div><ul class="summary-list"><li>Preston D. Cherry, CFP and founder of Concurrent <keyword id="25456" type="ORGANIZATION" weightage="60" keywordseo="financial-planning">Financial Planning</keyword>, and Kelly Lannan, vice president of Fidelity Investment's Young Investors for Personal Investing, sat down with Business Insider's Tanza Loudenback for the <keyword id="9089434" type="UNKNOWN" weightage="100" keywordseo="master-your-money">Master your Money</keyword> Live Digital Bootcamp.</li><li>They discussed aligning your <keyword id="31669" type="PERSON" weightage="60" keywordseo="spending">spending</keyword> with your values, why it's important to explore your money mindset, and how to plan for the future in times of uncertainty.</li><li>Watch the video of the event below.</li></ul><iframe width="560" height="315" src="https://www.youtube.com/embed/CA4OesrWFKM" frameborder="0"></iframe>For the Master your Money Live Digital Bootcamp "How to control your money so it doesn't control you," personal-finance correspondent Tanza Loudenback sat down with two professionals to talk about how to explore your money mindset, budget individually and as a couple, and align your spending and your values.Preston D. Cherry, CFP and founder of <a href="https://www.concurrentfp.com/" target="_blank" rel="noopener">Concurrent Financial Planning</a>, and Kelly Lannan, vice president of Fidelity Investment's Young Investors for Personal Investing, suggested a few things people can do to gain control of their money during these uncertain times.<h2>1. Budget with well-being in mind </h2>It's been an isolating year. Many people have been spending most of their time indoors with no separation between work life and home life.To combat the monotony, Lannan encourages everyone to review their budget and reflect on how much they're spending, saving, and earning. Of course, she said, make sure you're paying your bills and setting money aside in an <a href="https://www.businessinsider.com/personal-finance/how-much-money-to-save-in-emergency-fund-rules" target="_blank" rel="noopener">emergency fund</a>, but also check whether you're making room for your well-being."I know that I need to continue to spend money on the things that still do make me happy because I'd go crazy without it," Lannan said. Whether it's a daily latte to-go or buying a new piece of clothing once a month, she said, give yourself permission to spend within reason."Definitely incorporate it in your budget," she added, "but you should never be feeling guilty about something that makes you happy, because if that is something that you can look forward to and keep things positive, we just want that for everyone at the end of the day. Life is more than just pinching pennies sometimes."<h2>2. Reflect on past financial decisions</h2>Personal finance isn't just a numbers game. There are a host of psychological factors that influence a person's behaviors and attitudes around money.To understand your own mindset and how it might be helping or hindering your ability to control your money, Cherry recommends reflecting on past financial decisions."I like to ask [clients] to share with me a money event that has happened in the last six months," Cherry said. "What was that event? How did you feel about it? Did it make you uncomfortable? Did it align with what you want to do? What you aspire to do? How did you feel about that? And then, what would you have done differently? What would you like to do differently?"These questions could reveal some raw emotion, he said, but that's the point. In order to adjust your habits or mindset, you have to be honest about your status quo."You really have to have a willingness first. I mean it," Cherry said. "That's the first step: having that willingness and courage in order to really look at what's going on."<h2>3. Resist comparing yourself to others</h2>Comparing yourself to others is part of human nature, and it's been made even easier with the advent of social media."We see people we haven't even met before doing crazy things — like who the heck is traveling to Greece during the pandemic?" Lannan said. "I would love to know and meet you and maybe get on your private jet. But this is just a reality."When you don't know what someone's financial situation is like behind the photo, you're only doing yourself a disservice if you compare it to your situation, she said."My biggest piece of advice, and this is hard, OK, I'm not saying it's easy: People have to stop comparing yourselves to others, especially over social media," Lannan said."You have to define your own goals, because we all know what makes us happy. You have to start to align your money to your values, to the things that make you happy. That can be at least an important first step in trying to not compare yourself too much to others," she said.If you do find yourself scrolling through photos and asking "How are they pulling that off, financially?" then you're asking the wrong question, Cherry said. If it's something you'd also like to have or do, ask yourself: How can I make a plan to obtain or achieve that myself?

3 strategies to gain control of your money today, no matter how stressed you are

<a href="https://www.businessinsider.com/master-your-money"></a><div type="image" title="millennials friends together" height="1307" width="1743" msid="79213025" hostid="261"></div><ul class="summary-list"><li>Research shows that outside of genetics, more of our happiness is determined by factors we can control than factors we can't.</li><li>When it comes to our money, we have control over how much we earn, spend, and save or invest.</li><li>Adjusting these inputs can make a big difference in financial security and achieving goals.</li></ul>During any economic downturn, financial experts tend to preach a similar sermon: <a href="https://www.businessinsider.com/personal-finance/best-advice-for-a-recession-focus-on-what-you-control" target="_blank" rel="noopener">Focus on what you can control</a>.For me, that message conjures an image of my money life as a machine with three separate levers.One lever is labeled "<keyword id="6434012" type="UNKNOWN" weightage="60" keywordseo="earning">earning</keyword>," which is income and any bonuses or other windfalls I may receive, such as a tax refund. Another is "<keyword id="31669" type="PERSON" weightage="60" keywordseo="spending">spending</keyword>," which is all the outgoing cash that covers bills and other expenses. Finally, there's "<keyword id="6370266" type="UNKNOWN" weightage="60" keywordseo="saving">saving</keyword> and investing" — I lump these two together because they serve the same purpose: to build wealth.Just about everything I do with my money falls into one of these categories. Taken together, they present a clear picture of where I stand and where I'm headed. Thinking of my money in this way — as a machine with levers I can move up or down to align with my values and meet my goals — reinforces an unmistakable truth: I have control.<h2>Up to 40% of our happiness is controllable, research shows</h2>According to the American Psychological Association, nearly two in three adults say money is a significant source of stress in their lives. While financial stress is present for Americans at all income levels, it's highest among those earning below $50,000 a year, <a href="https://www.apa.org/news/press/releases/stress/2020/report-october" target="_blank" rel="noopener">the data showed</a>. When things are going badly, financially or otherwise, we often point the blame at outside factors. To some degree, that's fair. The COVID-19 pandemic, for example, is broadly responsible for millions of lost jobs and further economic pain. In the US, generations of systemic racism have created an <a href="https://www.businessinsider.com/personal-finance/what-racism-has-cost-black-americans-black-tax-2020-9" target="_blank" rel="noopener">enormous and overwhelming racial wealth gap</a>, not to mention a gender pay and wealth gap. The financial playing field isn't level by any means.These are real challenges supported by data, and no one is expecting anyone to overcome them through willpower alone. However, when we talk about happiness, emotions don't always correlate with facts; two people in the same financial situation might feel entirely different about it.In his book "<a href="https://www.amazon.com/Geometry-Wealth-Shape-Money-Meaning/dp/0857196715" target="_blank" rel="noopener">The Geometry of Wealth</a>," the behavioral-finance expert Brian Portnoy explains what drives our overall happiness in life, citing research by Sonja Lyubomirsky, a professor of psychology at the University of California, Riverside. To simplify, 50% of our happiness is attributable to genetic disposition, 40% is explained by our intentions, and 10% is determined by circumstance.Ultimately only a slice of the overall makeup of our personal fulfillment is related to external factors — where we live, how we look, or what salary we earn, for instance. A much larger chunk is determined by what we do. That's good news, Portnoy says, because it means we as individuals hold some power to upgrade the hand we've been dealt."Conscious decision-making and deliberate action have material consequences for the quality of one's life experience," he writes. "Your choices of thought and action make a big difference."<h2>Don't get stuck running in place</h2>If you feel like your own money machine — your potential to earn, spend, or save — is locked in place, you're not alone."The scarcity mindset is a very prominent reality [among millennials]," Sunny Israni, a certified financial analyst and the founder and CEO of the personal-finance app <a href="https://www.clasp.app/" target="_blank" rel="noopener">Clasp</a>, said during Business Insider's <keyword id="9089434" type="UNKNOWN" weightage="100" keywordseo="master-your-money">Master Your Money</keyword> roundtable."Healthcare costs, rising education costs, rising housing costs, income levels being stagnant — there's no surprise as to why the scarcity mindset and this idea of just being bad with money is there, and that there are challenges in reprogramming yourself," Israni said.Scarcity mindset is the idea that there isn't enough time, resources, wealth, or happiness to go around. It's fixating on what you don't have instead of using the tools you do have, or that are within reach.Lyubomirsky's framework for happiness shows us that it is possible to flip the script and take charge.<h2>How to adjust the levers of your money machine</h2>To adjust the levers of your money machine appropriately, you must have well-defined goals. A goal can be as simple as building a $5,000 emergency fund or as complex as retiring at age 60 and living on 80% of your preretirement income. In most cases, the objective is to save or invest more money.To that end, one strategy is to shift down the spending lever — move to a cheaper city, eat out less often, cut the number of subscriptions you pay for, and so on. All else remaining equal, you'll free up cash. However, there is a limit when it comes to adjusting spending, the certified financial planner Eric Roberge says.You can make an even bigger difference by <a href="https://www.businessinsider.com/increase-income-or-cut-expenses-financial-planner-2019-3" target="_blank" rel="noopener">increasing your income</a>, he and his wife, Kali, said on an episode of their podcast "Beyond Finances." Cutting your expenses and daily spending takes continued effort — it's a short-term solution — while increasing your positive cash flow is a long-term solution, they said.The <a href="https://www.businessinsider.com/strategies-to-earn-more-from-self-made-millionaires-2016-5" target="_blank" rel="noopener">earning</a> lever is the one with an unlimited runway. Your spending can drop only to $0, which is unrealistic, and the amount you put toward savings and investments is limited to the difference between your income and expenses.Portnoy adds that there are, of course, limits to what we can and cannot achieve through sheer willpower. Our ability to control the situation before us has boundaries. It's highly unlikely you'll become a billionaire in your lifetime on a steady $80,000 salary. But through careful <a href="https://www.businessinsider.com/how-to-make-a-plan-for-your-goals-2020-6" target="_blank" rel="noopener">planning</a>, <a href="https://www.businessinsider.com/personal-finance/how-to-work-on-your-financial-plan-2020-6" target="_blank" rel="noopener">mindfulness</a>, and <a href="https://www.businessinsider.com/money-mistake-recover-financial-plan-2020-7" target="_blank" rel="noopener">resilience</a>, there is hope for an improved reality — or at least, one that you feel better about.

Money can't buy happiness, but how we adjust 3 financial 'levers' can drastically affect how we feel

<a href="https://www.businessinsider.com/masteryourmoney"></a><div type="image" title="Shang, who blogs at Save My Cents" height="653" width="871" msid="84655202" hostid="261"></div><ul class="summary-list"><li>To reach a net worth of $1 million in her early 30s, Shang of Save My Cents made strategic moves. </li><li>She started a side hustle, and she and her partner reduced their expenses to save 50% or more of their incomes.</li><li>Then, she invested in low-cost index funds consistently in order to build wealth.</li></ul>Early retirement as a millennial can sometimes seem like a stretch, but it is possible.Shang, who doesn't share her last name online, reached a $1 million net worth and became work-optional in her early 30s. Blogging online at <a href="https://savemycents.com/" target="_blank" rel="noopener">Save My Cents</a>, the millennial built her net worth with three strategies she used over time consistently. Here's how she reached this major milestone. <h2>1. She started a side hustle </h2>Shang started working as a wedding photographer to bring in extra income, adding to what she made at her full-time job as a corporate strategist. Instead of spending the money, she invested it. "The money that I made from that I rarely spent," she told Insider. Over 10 years, she estimated that her wedding photography side hustle helped her earn more than six figures.By investing the money, she was able to earn even more from her side hustle and ultimately grow her net worth more quickly. <h2>2. She and her partner saved 50% or more of their incomes, and saved any bonuses or raises</h2>To keep their expenses low and their savings rate high, Shang and her husband decided to only live on the equivalent of just one of their incomes. Instead of one person putting their entire paycheck in the bank, though, each of them saved 50% or more of their own income."As I neared my mid-20s and I met my husband, and we were dating at the time, he started floating the idea of, 'What if we lived on the lower of our two incomes?'" she said. Using this strategy ultimately meant increasing her savings rate to about half of her salary, raising her savings rate from 30% to 50%. Any bonuses they received at work were also invested. "When we say we live off the lower of our two incomes, we're talking about our base incomes. We also do get generous bonuses and all of that was invested over time," she told Insider. Her net worth is made up of her savings alone; her husband has his own savings and investments.It's a strategy that others in the <keyword id="28762" type="ENTERTAINMENT" weightage="60" keywordseo="fire">FIRE</keyword> community and those who have <a href="https://www.businessinsider.com/personal-finance/couple-paid-off-student-loans-lifestyle-changes-2021-4" target="_blank" rel="noopener">paid off large amounts of debt</a> have used to reach their goals. <h2>3. She avoided following trendy investment advice and went for a slow-and-steady approach</h2><a href="https://www.businessinsider.com/personal-finance/how-to-invest-in-stocks-beginners-guide" target="_blank" rel="noopener">Investing</a> has always been a part of her strategy, and Shang says that being consistent was one of the most important parts of her process. She says that her focus has mostly been on <a href="https://www.businessinsider.com/what-is-an-index-fund" target="_blank" rel="noopener">index funds with low costs</a>. "I'm not in crypto, I don't day trade," she said. "I'm very much a person that's like, 'Just be even-keeled and try to stay with the market as much as you can,'" she said.Financial planners often suggest keeping investments for the long term, and avoiding feeling the stresses of ups and downs in the market, a strategy that clearly worked for Shang.<ul class="read-more-links"><li>Read more:</li><li><a href="https://www.businessinsider.com/millennial-saving-early-retirement-strategies-2021-6">4 strategies a 28-year-old used to grow her net worth by $92,000 in a year</a></li><li><a href="https://www.businessinsider.com/personal-finance/millennial-used-severance-money-fund-new-career-2021-4">How a laid-off millennial turned her $20,000 severance check into a thriving freelance career</a></li><li><a href="https://www.businessinsider.com/paid-off-student-loans-faster-than-expected-using-strategies-2021-4">A millennial paid off $23,000 of student loans in half the time she expected thanks to 3 simple moves</a></li><li><a href="https://www.businessinsider.com/millennial-couple-benefits-of-automating-money-2020-12">A millennial couple explains how they use automatic savings and bill pay to avoid money stress in their relationship</a></li></ul>

A woman who hit a $1 million net worth in her early 30s shares the 3 strategies that helped her reach her goal

<a href="https://www.businessinsider.com/masteryourmoney"></a><div type="image" title="Connie Conpoint" height="1701" width="2268" msid="83579514" hostid="261"></div><ul class="summary-list"><li>A millennial who saved $92,000 in a year used four strategies to save and invest more. </li><li>She took advantage of her 401(k) and HSA to save on taxes and grow her balance. </li><li>She also held herself accountable by telling others about her goal and keeping a spreadsheet. </li></ul>In 2020, 28-year-old Connie Conpoint's net worth grew by $92,000. Conpoint, an Austin, Texas-based <a href="https://pointliterature.com/" target="_blank" rel="noopener">blogger</a> and tech worker who uses a pseudonymous last name online, is working toward financial independence. Since she was lucky enough to keep her job last year, living frugally on a high salary helped her grow her <a href="https://www.businessinsider.com/personal-finance/how-to-calculate-net-worth-steps" target="_blank" rel="noopener">net worth</a> - which is simply her assets minus her liabilities - quickly.Planning to leave full-time work in seven years, she primarily uses four strategies to save, grow her investment accounts, and stay on track to retire at 35. <h2>1. She uses her employer's benefits to their fullest</h2>Conpoint uses a well-known way to get what's often called "free money": her workplace's <a href="https://www.businessinsider.com/what-is-a-401k" target="_blank" rel="noopener">401(k)</a> retirement savings plan, which provides an employer match. Working in tech, she contributed enough to get her employer's full match of up to 6% of her salary. A 401(k) is a tax-advantaged retirement account provided by many employers to help employees save for retirement. Some of these employers also provide an <a href="https://www.businessinsider.com/personal-finance/401k-retirement-plan-benefits-taxes-employer-match-2019-5" target="_blank" rel="noopener">employer match</a>, which is a set amount of money contributed by your employer to your 401(k) when you <a href="https://www.businessinsider.com/personal-finance/how-to-invest-in-a-401k-for-retirement" target="_blank" rel="noopener">make your own contribution</a>. Generally, these limits cap at a certain percentage of your salary. For Conpoint, the match made a big difference. "I try to max out my 401(k) every year," she told Insider by email, and tries to get the full match each year. The <a href="https://www.businessinsider.com/personal-finance/roth-ira-traditional-ira-income-limits-2021-2020-10" target="_blank" rel="noopener">maximum contribution</a> to a 401(k) in 2021 is $19,500.Her employer also offers a perk that's not unusual in the tech field: an employee stock purchase program, which allows her to buy company stock at a discount.It's helped her to build up her portfolio over time. "I buy the max because I see a lot of potential in my company and our ESPP has safeguard policies that make losing money pretty unlikely," she said. "By paying attention during my new hire onboarding and clicking a few buttons, I've made thousands of dollars from our ESPP every year," Conpoint continued. "It's the easiest money I've made."To find out if your office or workplace offers these benefits, check with your HR department.<h2>2. She uses an HSA to take advantage of tax breaks</h2>A <a href="https://www.businessinsider.com/personal-finance/how-to-use-health-savings-account-hsa-investing-retirement" target="_blank" rel="noopener">health savings account</a> can help with more than immediate health costs - and Conpoint uses that to her advantage."I don't use my HSA to cover medical expenses," Conpoint told Insider. "Instead, I use it as a triple-tax advantaged account and invest through it."Part of the appeal of a HSA is the fact that it's a savings and investing account that can be used for medical expenses both now and later. It's tax advantaged three ways: The money is contributed from your paycheck pre-tax, grows tax-free, and can be withdrawn tax-free for appropriate medical expenses.In 2021, a single person can contribute up to $3,600 per year to an HSA, while couples and those with family coverage plans can contribute up to $7,200 per year. However, there's an important caveat: These accounts are only available to those who have a high-deductible healthcare plan. Since the funds don't expire, Conpoint's contributions can be invested and <a href="https://www.businessinsider.com/personal-finance/used-health-savings-account-missed-retirement-opportunity-2020-12" target="_blank" rel="noopener">saved for future expenses</a>.<h2>3. She holds herself accountable by sharing her progress </h2>Conpoint found herself posting about her accomplishments on <a href="https://www.instagram.com/conpoint/" target="_blank" rel="noopener">Instagram</a>, and finding a personal finance community to hold her accountable was helpful, she found."I didn't intend for my Instagram to turn into a financial account," she said, "but Instagram has such a supportive personal finance community, especially for women of color like myself." Conpoint is Chinese-American."It's refreshing to open up about a taboo topic and know you're not alone," she continued. "That sense of community definitely kept me going." She shares her savings rate monthly, along with her wins and things she wishes she'd done differently. While Instagram might not be the place for everyone, social media isn't the only way to get some accountability: <a href="https://www.businessinsider.com/personal-finance/best-online-financial-advisors" target="_blank" rel="noopener">a financial planner</a> or a trusted friend can help in a similar way.<h2>4. She uses a spreadsheet to control her spending</h2>Conpoint lives below her means to save at least 45% of her take-home pay each month, though she generally saves more. To save aggressively, she tracks every dollar she saves and spends through a simple spreadsheet."I use a manual spreadsheet to this day because it makes me hyper-aware of my spending habits," Conpoint said. "Many people think saving money is the focus, but that's an outcome goal. The action goal is controlling spending."She logs every one of her expenses, and categorizes each transaction. She budgets for things she wants to do, like eat out. "I build it into my money management system, so I can plan for it instead of restricting myself," she said."I have a shortcut to my spreadsheet on my phone's home screen - logging expenses in the moment is as easy as sending a quick text," she said. There, she can also calculate her savings rate, and stay aware of the things she buys. "It's cool to plug in a fake expense to see how it will affect my savings rate," she said. "If you can be intentional with your spending," she continued, "the savings will naturally come." <ul class="read-more-links"><li>Read more from <keyword id="9089434" type="UNKNOWN" weightage="100" keywordseo="master-your-money">Master Your Money</keyword>:</li><li><a href="https://www.businessinsider.com/paid-off-student-loans-faster-than-expected-using-strategies-2021-4">A millennial paid off $23,000 of student loans in half the time she expected thanks to 3 simple moves</a></li><li><a href="https://www.businessinsider.com/personal-finance/millennial-used-severance-money-fund-new-career-2021-4">How a laid-off millennial turned her $20,000 severance check into a thriving freelance career</a></li><li><a href="https://www.businessinsider.com/millennial-couple-debt-payoff-strategies-2020-12">A woman who married into 6-figure debt shares the strategies she and her husband have used to pay off $50,000 so far</a></li><li><a href="https://www.businessinsider.com/took-control-of-my-money-tips-2020-12">4 things I've done this year to take control of my money and get on the path to building wealth</a></li></ul>

4 strategies a 28-year-old used to grow her net worth by $92,000 in a year

<a href="https://www.businessinsider.com/masteryourmoney"></a><div type="image" title="Master your Money virtual event graphic with the text 'A Millennial Guide to Homeownership.'" height="1250" width="2501" msid="82746870" hostid="261"></div><ul class="summary-list"><li>In an upcoming virtual event on Tuesday, June 22 at noon ET, personal finance professionals will discuss millennial <keyword id="466615" type="PERSON" weightage="60" keywordseo="homeownership">homeownership</keyword>.</li><li>The event is part of the <a href="https://www.businessinsider.com/masteryourmoney" target="_blank" rel="noopener">Master Your Money</a> series, delivering money advice, ideas, and inspiration to millennials.</li></ul>This past year has seen an influx of homebuyers across much of the US. Historically low interest rates made homeownership more attainable - but also created a hyper-competitive market.To help millennials take control of their money, Insider presents "A Guide to Millennial Homeownership," a free, live virtual event that's part of our <a href="https://www.businessinsider.com/masteryourmoney" target="_blank" rel="noopener">Master Your Money</a> series, presented by Fidelity.In this virtual hour-long event, two personal finance professionals and a Personal Finance Insider moderator will provide a guide to the ins and outs of millennial homeownership, starting with figuring out how much home you can really afford."A Millennial Guide To Homeownership" will be the culmination of Insider's second month-long <keyword id="9089434" type="UNKNOWN" weightage="100" keywordseo="master-your-money">Master Your Money</keyword> Bootcamp, which challenges anyone to put a price tag on their dreams and create a plan to afford them. Learn more about the Bootcamp <a href="https://www.businessinsider.com/master-your-money-bootcamp-decide-what-you-want-2021-5">here</a>.Topics will include:<ul><li>How to decide between renting and buying</li><li>What to prepare for and what to expect during the home-buying process</li><li>How to calculate how much house you can afford to buy</li><li>Surprise housing costs many people don't see coming</li><li>Expert tips on making your home part of your wealth-building journey</li></ul>The discussion will be moderated by <a href="https://www.businessinsider.com/author/tanza-loudenback" target="_blank" rel="noopener noreferrer">Tanza Loudenback</a>, Personal Finance Insider correspondent and CERTIFIED FINANCIAL PLANNER™. She'll be joined by Kelly Lannan, vice president of Young Investors for Personal Investing, a unit of Fidelity Investments, and Pamela Capalad, CERTIFIED FINANCIAL PLANNER™ and founder of <a href="https://brunchandbudget.com/" target="_blank" rel="noopener">Brunch &amp; Budget</a>.This free, live virtual event will take place on Tuesday, June 22 at noon ET. Register below: <h1 class="formheader">Register For “Master Your Money: A Guide to Millennial Homeownership”</h1> Yes, I agree to receive marketing emails from Insider Inc. and Fidelity Investments and accept the <a href="https://www.insider-inc.com/terms">terms and conditions</a>, <a href="https://www.insider-inc.com/privacy-policy">Privacy</a>, and <a href="https://www.insider-inc.com/cookie-policy">Cookie Policies</a> and agree to receive marketing emails from Insider Inc. You can opt-out of emails at any time. Registration information will only be shared with Fidelity Investments. <ul class="read-more-links"><li>Read more:</li><li><a href="https://www.businessinsider.com/personal-finance/millennial-met-financial-goal-share-your-story-2021-4" target="_blank" rel="noopener">Are you a millennial who met a financial goal in 2020? Insider wants to hear your story.</a></li><li><a href="https://www.businessinsider.com/paid-off-student-loans-faster-than-expected-using-strategies-2021-4" target="_blank" rel="noopener">A millennial paid off $23,000 of student loans in 5 years thanks to 3 simple moves</a></li><li><a href="https://www.businessinsider.com/personal-finance/millennial-used-severance-money-fund-new-career-2021-4" target="_blank" rel="noopener">How a laid-off millennial turned her $20,000 severance check into a thriving freelance career</a></li><li><a href="https://www.businessinsider.com/master-your-money-bootcamp-demystify-your-finances-2021-4" target="_blank" rel="noopener">The Master Your Money Bootcamp will help you take control of your finances, no matter how messy they are</a></li></ul>

Master Your Money Virtual Event: A deep dive into millennial homeownership

<a href="https://www.businessinsider.com/masteryourmoney"></a><div type="image" title="Master Your Money decide what you want 2x1" height="1250" width="2501" msid="82536123" hostid="261"></div>The thing about dreams is that we often assume they're completely out of reach. Sure, if $1 million came our way, we'd pay our student loan debt off in full. Or take a safari. Or buy a house. Or throw the wedding of our dreams. But without that windfall, who can afford it, right?If you do the math, you might be surprised.Over the next month, that's what we'll be focusing on: Putting a price tag on your dreams and creating a plan to help you afford them in the future. We'll start with pinpointing what exactly it is you want to accomplish with your cash, identify the right first step to take, and identify any challenges standing in your way. Then, we'll calculate exactly what this goal will cost, and lay out a timeline for how long it will take to achieve.We're not going into this blindly. We know that the ability to afford your dreams depends on a lot of things: your job, your living situation, your credit, and the flawed systems in the US that favor some people over others. We know that if you dream of a private island, you'll probably need more than a month of strategizing. But if you dream of things like laying the groundwork to become debt-free, or a homeowner, or pay for your children's college, we can get you started on that journey.<h2>Welcome to the <keyword id="11106143" type="UNKNOWN" weightage="60" keywordseo="master-your-money-bootcamp">Master Your Money Bootcamp</keyword></h2><keyword id="9089434" type="UNKNOWN" weightage="100" keywordseo="master-your-money">Master Your Money</keyword> Bootcamps are month-long challenges broken into simple one-week exercises to help you take control of your money.Over the course of 2021, we'll conduct four of these Bootcamps, each culminating in a free, live, virtual discussion among experts about how to make the most of the tasks you've already accomplished. You can take all four Bootcamps this year, or pick and choose the ones that give the guidance you need most.For each exercise, you'll get a detailed explanation of how to complete it and why it's important. Use the hashtags #MasterYourMoney and #MasterYourMoneyBootcamp to share your thoughts, progress, and connect with others across our <a href="https://twitter.com/BusinessInsider" target="_blank" rel="noopener">Twitter</a>, <a href="https://www.facebook.com/businessinsider/" target="_blank" rel="noopener">Facebook</a>, <a href="https://www.linkedin.com/company/businessinsider/" target="_blank" rel="noopener">LinkedIn</a>, and <a href="https://www.instagram.com/businessinsider/" target="_blank" rel="noopener">Instagram</a> as you make your way through each exercise, then join us for the live events.While you're here, feel free to visit (or revisit) our first <a href="https://www.businessinsider.com/master-your-money-bootcamp-demystify-your-finances-2021-4" target="_blank" rel="noopener">Master Your Money Bootcamp</a> of the year, which broke down the major task of demystifying your finances into four achievable steps.Our first Bootcamp exercise launches Monday, May 17, 2021. You don't have to sign up - just dive in! Here's what you'll accomplish in just one month (we'll link to each exercise as it goes live):<h2>Master Your Money Bootcamp: Decide what you want</h2><ul><li>Exercise 1: Dream big</li><li>Exercise 2: Choose what comes first</li><li>Exercise 3: Identify what's standing in your way</li><li>Exercise 4: Figure out your price tag and timeline</li><li>Virtual Live Event: Homeownership</li></ul><ul class="read-more-links"><li>Read more:</li><li><a href="https://www.businessinsider.com/personal-finance/millennial-met-financial-goal-share-your-story-2021-4" target="_blank" rel="noopener">Are you a millennial who met a financial goal in 2020? Insider wants to hear your story.</a></li><li><a href="https://www.businessinsider.com/paid-off-student-loans-faster-than-expected-using-strategies-2021-4" target="_blank" rel="noopener">A millennial paid off $23,000 of student loans in 5 years thanks to 3 simple moves</a></li><li><a href="https://www.businessinsider.com/personal-finance/millennial-used-severance-money-fund-new-career-2021-4" target="_blank" rel="noopener">How a laid-off millennial turned her $20,000 severance check into a thriving freelance career</a></li><li><a href="https://www.businessinsider.com/millennial-couple-benefits-of-automating-money-2020-12" target="_blank" rel="noopener">A millennial couple explains how they use automatic savings and bill pay to avoid money stress in their relationship</a></li></ul>

The Master Your Money Bootcamp will help you put a price tag on your dreams - and figure out how to turn them into reality

<a href="https://www.businessinsider.com/master-your-money"></a><div type="image" title="Ashley Keimach" height="514" width="685" msid="82412549" hostid="261"></div><ul class="summary-list"><li><a href="http://www.ashleykeimach.com/" target="_blank" rel="noopener">Ashley Keimach</a>, 27, paid off her <keyword id="35522" type="ORGANIZATION" weightage="60" keywordseo="student-loans">student loans</keyword>, totaling $23,000, in half the expected time.</li><li>She negotiated raises at work, and made extra payments each time she felt tempted to buy something.</li><li>When the pandemic hit, she used extra savings and payments to finish off her loans interest-free. </li></ul>Twenty-seven-year-old <a href="http://www.ashleykeimach.com/" target="_blank" rel="noopener">Ashley Keimach</a> found herself in the same situation many <keyword id="657946" type="PERSON" weightage="60" keywordseo="Millennials">millennials</keyword> have found themselves in after college: in five-figure debt. Keimach, a Los Angeles native working in the health insurance field, originally had a 10-year timeline to pay off about $23,000 worth of student loans, including interest. But, she did it in half the time - she <a href="https://www.businessinsider.com/how-to-pay-back-student-loans" target="_blank" rel="noopener">wiped out her student loans</a> in five years instead, paying off about $13,600 in 2020 alone. And she credits her <a href="https://www.businessinsider.com/how-to-pay-off-student-loans-faster" target="_blank" rel="noopener">quick payoff</a> with three moves she made to earn more, spend less, and reach the end.<h2>1. She negotiated raises and funneled the extra cash to her loans</h2>To pay off her debt faster, Keimach worked on getting raises at her job. "I found myself being more proactive with my career and salary negotiations because I had a purpose. I needed to increase my income to <a href="https://www.businessinsider.com/how-to-get-out-of-student-loan-debt" target="_blank" rel="noopener">pay down my debt</a>," she told Insider. Increasing her income also meant switching jobs. "It gave me the courage to walk away from low-paying jobs and the audacity to apply to jobs that I wasn't qualified for on paper." As her salary increased, she'd funnel the additional cash towards her loans, paying down the principal. <h2>2. She spent extra money on her loans instead of on things</h2>In order to slash her spending, Keimach decided to try a simple strategy she saw online. "I remember hearing a while ago from someone on YouTube that whenever they wanted to buy something on an impulse, they would instead send that money directly to their loans," Keimach said. "I started doing this and it really helped me keep my mind focused on my goal."By simply putting the money she would have spent anyway toward her loans, she was able to make extra progress."It surprisingly became enjoyable, like it was a game," she told Insider. "Whenever I had extra money or would receive a raise, I would throw that money towards my loans before giving myself the chance to think about spending it on something else."<h2>3. She took advantage of a rare 0% interest rate</h2>Towards the end of her <keyword id="10223244" type="UNKNOWN" weightage="60" keywordseo="student-loan-payoff">student loan payoff</keyword> journey, the pandemic brought big change. <a href="https://www.businessinsider.com/personal-finance/when-does-student-loan-forbearance-end-2020-6" target="_blank" rel="noopener">Since March 2020</a>, federal student loan payments have been paused and interest rates set to 0% because of the COVID-19 pandemic. Keimach saw this <a href="https://www.businessinsider.com/personal-finance/millennials-paid-off-student-loans-during-pandemic-2021-4" target="_blank" rel="noopener">as an opportunity</a>."When the pandemic happened, I was in a position where my finances were better than ever. My husband and I had managed to save $20,000 and I had around $10,000 left on my loan," she said. "When we learned about interest being paused on student loans, it forced us to re-evaluate my debt-repayment strategy." Given that opportunity, Keimach made extra payments towards her student loans throughout 2020. With interest rates at 0%, any money put towards loans would go directly to the principal. But, she and her husband decided they could do more, and the couple made a lump sum payment from their savings to pay off the full balance in August 2020."I'm not sure if I would have made such a big payment if interest was not paused," she said. But, when the opportunity presented itself, she took advantage as best as she could."The temptation to pause payments and redirect that money towards our <a href="https://www.businessinsider.com/what-to-do-with-savings" target="_blank" rel="noopener">other financial goals</a> was at the forefront of my mind," she said. "But I also knew that getting rid of my student loan debt once and for all would give me freedom and peace of mind." <ul class="read-more-links"><li>Read more:</li><li><a href="https://www.businessinsider.com/personal-finance/millennial-used-severance-money-fund-new-career-2021-4" target="_blank" rel="noopener">How a laid-off millennial turned her $20,000 severance check into a thriving freelance career</a></li><li><a href="https://www.businessinsider.com/millennial-couple-benefits-of-automating-money-2020-12">A millennial couple explains how they use automatic savings and bill pay to avoid money stress in their relationship</a></li><li><a href="https://www.businessinsider.com/took-control-of-my-money-tips-2020-12" target="_blank" rel="noopener">4 things I've done this year to take control of my money and get on the path to building wealth</a></li><li><a href="https://www.businessinsider.com/millennial-couple-debt-payoff-strategies-2020-12">A woman who married into 6-figure debt shares the strategies she and her husband have used to pay off $50,000 so far</a></li></ul>

A millennial paid off $23,000 of student loans in half the time she expected thanks to 3 simple moves

<div type="image" title="millennials talking money" height="1242" width="1656" msid="78114832" hostid="261"></div><ul class="summary-list"><li>Across income levels, about half of millennials surveyed by Business Insider and Insider Intelligence said they turn to friends and family for financial advice.</li><li>But not all said those friends and family were the most trustworthy source.</li><li>Friends and family can be helpful, but when it comes to complicated matters like investing, it might be best to get a professional opinion.</li></ul>It's hard to talk about money. For generations, Americans have been conditioned to sidestep conversations about salary, spending habits, and the balance in our <a href="https://www.businessinsider.com/personal-finance/what-are-the-best-savings-accounts-right-now" target="_blank" rel="noopener">savings accounts</a>. But millennials are changing that.According to Business Insider and Insider Intelligence's <keyword id="9089434" type="UNKNOWN" weightage="100" keywordseo="master-your-money">Master Your Money</keyword> "<keyword id="47916" type="ORGANIZATION" weightage="60" keywordseo="invest">Invest</keyword> &amp; Thrive Survey," half of millennials (defined as those ages 21 to 38) said they turn to a friend, family member, or significant other for <a href="https://www.businessinsider.com/personal-finance/best-money-advice-conversations-financial-planners-2020-6" target="_blank" rel="noopener">financial advice</a>.It's not that millennials can't afford professional help. In total, 1,023 survey respondents said they ask their family, friends, or partner, for financial advice, including:<ul><li>21% of those earning less than $25,000 </li><li>26% of those earning between $25,000 and $49,999</li><li>21% of those earning between $50,000 and $74,999</li><li>14% of those earning between $75,999 and $99,999</li><li>18% of those earning $100,000 or more</li></ul>Of the total sample size of 2,020 millennials, the next most popular source of advice was the internet followed by <a href="https://www.businessinsider.com/personal-finance/do-i-need-a-financial-advisor" target="_blank" rel="noopener">financial advisers</a>. Thirty-eight percent of respondents said they searched for free advice online, 24% said they went to a financial adviser at their bank or credit union, and 15% said they went to an independent adviser (respondents were able to choose more than one answer).Yet the sources that millennials trust most don't quite match up.<h2>Some millennials who go to friends and family for advice don't consider them trustworthy</h2>It's good that millennials are so willing to be open about money. In fact, increasing pay transparency (like <a href="https://www.businessinsider.com/personal-finance/coworker-helped-me-raise-my-salary-2020-7" target="_blank" rel="noopener">sharing your salary and negotiation tips with coworkers</a>) is one action we can take to begin to close gender and racial pay gaps.But there's a difference between sharing information and asking explicitly for advice. The "Invest &amp; Thrive Survey" findings suggest many millennials recognize their friends and family might not be the best counsel.Among respondents who said they seek financial advice — a total of 1,628 — only 29% said friends, family members, or a significant other was the most trustworthy source. An equal share said their bank or credit union's financial adviser was most trustworthy, even though only about a quarter of total respondents (2,020 millennials) use them. Just 10% of respondents said <a href="https://www.businessinsider.com/personal-finance/apply-general-financial-advice-to-your-own-money-2020-6" target="_blank" rel="noopener">free advice online</a> was most trustworthy, despite 38% of total respondents saying they searched for it.Financial advice can be tricky when it's coming from someone who has an emotional stake in your life. Parents, siblings, friends, and even spouses may think they know what's best for you. Plus, their advice can easily be colored by their own experiences.Asking for basic <a href="https://www.businessinsider.com/personal-finance/best-budgeting-apps" target="_blank" rel="noopener">budgeting</a> help or whether you should <a href="https://www.businessinsider.com/personal-finance/how-to-invest-in-a-401k-for-retirement" target="_blank" rel="noopener">start contributing to your 401(k)</a> is fine. Sometimes we need that encouragement to take action from someone close.But soliciting advice on larger-stakes aspects of your financial plan, like creating an <a href="https://www.businessinsider.com/personal-finance/creating-an-investment-plan-can-be-easy-as-planning-baecation-2020-6" target="_blank" rel="noopener">investment strategy</a>, can get complicated. A person's risk tolerance (how much risk they can stomach) and risk capacity (how much money they can afford to risk) is unique to them.For truly objective advice, millennials should consider working with a <a href="https://www.businessinsider.com/personal-finance/what-is-a-fiduciary-financial-adviser" target="_blank" rel="noopener">fiduciary financial adviser</a>. They're legally obligated to offer recommendations in the best interest of their client and either avoid or disclose conflicts of interest that could interfere with their advice. According to the survey, many millennials already know these professionals are trustworthy, so it might be a matter of just taking the plunge.

Half of millennials go to a friend, family member, or partner for money advice — regardless of how much they earn

<a href="https://www.businessinsider.com/master-your-money"></a><div type="image" title="millennials wait to invest" height="1334" width="1778" msid="77940947" hostid="261"></div><ul class="summary-list"><li>In Business Insider and Insider Intelligence's <keyword id="9089434" type="UNKNOWN" weightage="100" keywordseo="master-your-money">Master Your Money</keyword> Invest &amp; Thrive Survey, millennials across all income levels say they aren't investing because they don't think they earn enough money.</li><li>However, it's never been cheaper to start investing, and time in the market is an advantage that can't be overlooked.</li><li>Waiting until you have "enough" money to invest is dangerous, because it shortens your time horizon, increasing your risk at the same time.</li><li>Investing regularly is much like building any other habit — you start small, get used to it, and go from there.</li></ul>Time is everything in investing. No, not plotting for the perfect moment to buy into the market, but simply getting in whenever you can and staying put.Of course, you need money to invest, too, but probably less than you think. The financial barrier to entry is the lowest it has ever been. Some of the <a href="https://www.businessinsider.com/personal-finance/what-are-the-best-investment-apps">best investment apps</a> allow investors to build a diverse portfolio with $10 or less.Just starting to invest, no matter the dollar amount, means your money has time to grow — and that's crucial.When Business Insider and Insider Intelligence asked millennials (defined as ages 21 to 38) about their investment behaviors for the Master Your Money Invest &amp; Thrive Survey, many said their income is part of what's holding them back from investing.In total, 41% of the 2,020 survey respondents said they're not currently investing in any financial products. Among them, 48% said they don't have enough money. Exactly half of the non-investors said earning more would cause them to start. The respondents also cited other reasons for not investing, including <a href="https://www.businessinsider.com/personal-finance/where-to-save-money-savings-cd-money-market-invest" target="_blank" rel="noopener">focusing on savings</a> and not understanding how to invest. But even across personal income levels, up to $100,000 a year, "I don't have enough money to invest" was the top choice. These millennials might be missing the point.It's understandable to hold off on investing if you're struggling to pay basic bills. And debt payments and building up an <a href="https://www.businessinsider.com/personal-finance/tips-build-emergency-fund-from-scratch">emergency fund</a> of at least three months' worth of expenses should come next in most cases.Beyond those fundamentals, many experts argue that investing in stocks and bonds — especially when you're young — is a necessity. <h2>The magic of compound interest </h2>Whether your financial goals include<a href="https://www.businessinsider.com/personal-finance/how-much-money-need-invested-retire-at-65"> retiring comfortably at 65</a> or quitting work to travel the world in your 30s, the simple truth is that the earlier you start saving and investing, the easier it will be to reach your target number. There will be losses to contend with, but generally, the stock market goes up over time.It may sound premature to squirrel away money for a far-off goal when you're young, but a few years could<a href="https://www.businessinsider.com/personal-finance/retirement-savings-start-at-25-vs-35-2019-4"> make a difference</a> of tens of thousands of dollars, or more, thanks to compound interest.<a href="https://www.businessinsider.com/personal-finance/retirement-advice-financial-planner-gives-clients-2020-7">Writing for Business Insider</a>, Malik S. Lee, a certified financial planner, explained it perfectly. "<a href="https://www.businessinsider.com/personal-finance/what-is-compound-interest-your-best-friend-or-enemy">Compound interest</a> empowers your portfolio by applying interest on top of your principal investment. The same interest rate (lower or higher) applies to the new balance, and the money snowball begins," Lee wrote."But your money can only compound if you give it time to do so. If you wait to invest, you have to rely on above-average returns to do the heavy lifting of increasing your account balances ... which is a dangerous strategy, because that means taking on more risk to achieve your goals," he continued.<h2>The value in building a habit</h2><a href="https://www.morningstar.com/lp/dollar-cost-averaging">Research shows</a> that investing a lump sum is generally a more lucrative strategy than splitting your money into smaller investments over time — a method called<a href="https://www.businessinsider.com/personal-finance/what-is-dollar-cost-averaging-a-way-to-build-wealth-over-time"> dollar-cost averaging</a> — in part because it gives your money more time in the market. But most people don't have the ability or confidence to invest a ton of money at once, and that's OK.Think about investing like working out. You don't start with the heaviest weights at the gym or set out to run your fastest mile before mastering your pace. Habits start small and momentum builds. Just because you can't hit those benchmarks on Day 1 doesn't mean you shouldn't start. If you wait for the perfect moment to take the plunge — well, you might learn there's no such thing.Stocks give you an opportunity to grow your money, but they rarely behave predictably. It's very difficult, if not impossible, to pinpoint the perfect time to invest before the moment is gone. Buying into the market when you can, at a risk level you're comfortable with, will help you take in all the potential gains over time.That is to say: If you're investing to build long-term wealth — not investing to make a quick buck — the best time to start is now.<a></a>

Half of millennials who aren't investing are waiting until they earn more money, and they could be making a big mistake

<div type="image" title="friends couple talking" height="1267" width="1690" msid="78157644" hostid="261"></div><ul class="summary-list"><li>Many millennials who are staying out of the stock market say they're focused on paying off debt.</li><li>Experts say you should pay off debt and <keyword id="47916" type="ORGANIZATION" weightage="60" keywordseo="invest">invest</keyword> at the same time if the interest rate on your debt is lower than the average stock-market return.</li><li>Access to benefits — such as 401(k) matching — make the case for <keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing">investing</keyword> even stronger because investors get a "guaranteed return."</li></ul>It's no secret millennials carry a heavy debt load. As Business Insider's Hillary Hoffower has reported, the generation is facing an <a href="https://www.businessinsider.com/millennials-great-recession-student-debt-affordability-crisis-2020-1" target="_blank" rel="noopener">affordability crisis</a> fueled partly by increased living costs and student loans.For its <keyword id="9089434" type="UNKNOWN" weightage="100" keywordseo="master-your-money">Master Your Money</keyword> "Invest &amp; Thrive Survey," Business Insider and Insider Intelligence asked 2,020 millennials (defined as those age 21 to 38) about their investment behaviors. Among them, 41% of respondents said they were not investing.The main reason they gave for <a href="http://businessinsider.com/millennials-waiting-to-invest-until-they-earn-more-mistake-2020-9" target="_blank" rel="noopener">staying out of the stock market</a> had to do with income limitations, but debt was a close second.Among non-investors, 22% said they weren't investing because they had too much debt, the "Invest &amp; Thrive Survey" found. More than a third said paying off debt would cause them to start.Millennials on the whole are more focused on <a href="https://www.businessinsider.com/personal-finance/how-to-pay-off-credit-card-debt" target="_blank" rel="noopener">paying off credit-card</a> and <a href="https://www.businessinsider.com/personal-finance/how-pay-back-student-loan-debt-options" target="_blank" rel="noopener">student-loan debt</a> than building wealth through investing. Among a pool of 1,807 survey respondents with financial goals, 38% said their debt load was a main barrier to achieving their goals.Taking on debt isn't the worst financial decision you can make, but putting off other goals and priorities such as investing because of debt could cost you big. Sometimes taking on debt is necessary, but waiting to put your money to work until your account balance says zero could cut into years of wealth generation.<h2>Strike a balance between debt payoff and investing</h2>The first order of business for any borrower is making the minimum payment every month. Not doing so could wreck your <a href="https://www.businessinsider.com/personal-finance/how-to-build-credit-with-a-credit-card-steps" target="_blank" rel="noopener">credit</a> and cause you to default on your loan.Beyond that, one financial expert <a href="https://www.businessinsider.com/personal-finance/pay-student-loan-debt-or-invest-broke-millennial-2019-4" target="_blank" rel="noopener">suggests a rule of thumb</a> for deciding whether to put additional cash you have toward debt or into an investment account to make the most of your income: Look at the interest rate.A well-diversified portfolio should return about 6% annually, after taxes, Sallie Krawcheck, CEO of online adviser <a href="https://www.businessinsider.com/personal-finance/ellevest-review-impact-portfolio-return-on-investment" target="_blank" rel="noopener">Ellevest</a>, told Erin Lowry in her book "<a href="https://www.amazon.com/Broke-Millennial-Takes-Investing-Beginners-ebook/dp/B07FZP4YFY" target="_blank" rel="noopener">Broke Millennial Takes on Investing</a>." Based on that, any student-loan debt with an interest rate of 7% or higher should be paid off before you start investing, Krawcheck said. Otherwise your investment gains will be virtually wiped out by the cost of your debt.Unfortunately, credit-card debt usually carries a much higher interest rate, so it's often better to prioritize that before investing.But because of the pandemic, student-loan rates are historically low. You might be able to <a href="https://www.businessinsider.com/personal-finance/private-student-loans-refinance-lower-interest-2020-6" target="_blank" rel="noopener">lower your interest rate through refinancing</a>, if you qualify, and free up cash for investing. Just make sure to get quotes from multiple lenders to figure out which one will most benefit you.<h2>Don't pass up a 401(k) match because of low-interest debt</h2>Amassing a proper retirement nest egg takes decades, and every year counts.According to the "Invest &amp; Thrive Survey," 19% of the millennials who said they didn't invest said one reason they didn't have a <a href="https://www.businessinsider.com/personal-finance/how-to-invest-in-a-401k-for-retirement" target="_blank" rel="noopener">401(k)</a> was they had too much debt (respondents were able to choose more than one answer). Just over a quarter said paying off debt would spur them to contribute to a 401(k).Having access to a 401(k), which allows employees to save money before taxes and grow their balance tax-deferred, is a privilege in itself. But some employers sweeten the deal by <a href="https://www.businessinsider.com/personal-finance/missed-out-on-401k-matching-in-20s-cost-me-money" target="_blank" rel="noopener">matching contributions</a> up to a certain amount. Experts often call this a "guaranteed return" or "free money" you shouldn't pass up, unless you're seriously strapped for cash or burdened by high-interest debt.It's important to remember that everyone handles money differently, and emotions often come into play, whether we invite them or not. If debt represents a significant emotional burden to you, regardless of the interest rate, paying it off before investing may be the way to go. Just know that you'll probably have to invest or save more later to make up for lost time.

Millennials are too focused on paying off debt to invest, but experts say there's room for both

<a href="https://www.businessinsider.com/master-your-money"></a><div type="image" title="millennials start investing" height="1413" width="1884" msid="77915450" hostid="261"></div><ul class="summary-list"><li>Retail trading exploded at the onset of the coronavirus outbreak in the United States.</li><li>With easy access to <keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing">investing</keyword> through online platforms, young investors rushed to cash in on the stock-market recovery. For some, it marked their first investing experience. </li><li>Financial experts typically recommend a passive investment strategy; the risks associated with frequent trading are higher and the rewards aren't consistently better.</li><li>But active investing can pay off for investors who have the time and interest required to develop the skill. </li></ul>When the coronavirus outbreak shut down businesses, schools, and entire cities in the spring, the US stock market crashed, and investors flocked to the fire.It's not unusual for seasoned investors to seek buying opportunities in market downturns, but this crisis surprised financial pundits when it spurred action from newbies too. While a great number of Americans were suddenly stuck at home and reconfiguring their budgets, <a href="https://markets.businessinsider.com/news/stocks/retail-investors-quarter-of-stock-market-coronavirus-volatility-trading-citadel-2020-7-1029382035#">retail trading exploded</a>, specifically among millennials.According to an <a href="https://go.apexclearing.com/apex-next-investor-outlook-q22020-infographic">analysis</a> of 1.3 million investment accounts at brokerages with an average owner age of 31, Apex Clearing, a digital custody and clearing firm, found that trading volumes rose by about 27% in the first half of this year.Despite a decidedly horrible economic outlook, investors with cash to spare saw possibilities."For many young people, there seems to be more recognition of the difference between the economy and the stock market," Wilson Muscadin, a financial coach and founder of <a href="https://www.themoneyspeakeasy.com/">The Money Speakeasy</a>, told Business Insider. "On one hand, the economy is experiencing record unemployment levels, significant business closures, and the effects of a resurging pandemic in many areas of the country," Muscadin said. "By contrast, the US stock market by many measures is back to pre-pandemic levels."Over the past few years, Muscadin said, a widespread effort to democratize the investment industry by reducing costs and making tools more accessible to the average person has culminated in a rise in active investing.Now, easy-to-use technology paired with coronavirus-induced volatility has turned the stock market into fertile ground for millennials, some who are investing for the very first time. <h2>New tech and low costs means investing is easier than ever before</h2>In Business Insider and Insider Intelligence's recent <keyword id="9089434" type="UNKNOWN" weightage="100" keywordseo="master-your-money">Master Your Money</keyword> Invest &amp; Thrive Survey, 47% of millennials identified as investors. Among them, 34% said an awareness of new <a href="https://www.businessinsider.com/personal-finance/what-are-the-best-investment-apps">investment apps</a> influenced their decision to start investing.In total, about 38% of the <keyword id="9843309" type="UNKNOWN" weightage="60" keywordseo="mym-invest">MYM Invest</keyword> &amp; Thrive Survey respondents who currently invest said they use a no-fee trading app, 27% said they use a traditional <a href="https://www.businessinsider.com/personal-finance/best-online-brokerage">brokerage</a>, 24% said they invest through a <a href="https://www.businessinsider.com/personal-finance/everything-you-need-to-know-about-financial-planners">certified financial planner</a> or adviser, and 13% said they use a <a href="https://www.businessinsider.com/personal-finance/how-to-invest-using-a-robo-adviser-in-2020">robo-adviser</a> (the respondents were able to choose more than one answer). Three of the biggest online brokers in the US reported exceptional surges in investor activity and engagement during March and April, collectively opening more than<a href="https://www.businessinsider.com/perfect-storm-of-stupid-in-stock-market-right-now-2020-5"> 780,000 new accounts</a>. But Robinhood, the wildly popular financial app, has been the bellwether for no-fee trading. The company ignited a price war last year that ended with nearly every big retail brokerage introducing zero-commission trading. During the height of the coronavirus outbreak in the US, Robinhood <a href="https://blog.robinhood.com/news/2020/5/4/robinhood-raises-280-million-in-series-f-funding-led-by-sequoia">opened roughly 3 million new accounts</a> on its platform. The company said half of those investors were first-timers.With a smartphone or computer and a couple of bucks to invest, the stock market's barrier to entry has never been lower. But easy access can lead to foolhardy behavior, some experts say."Many people see the current situation as an easy way to make money. When one looks at oil or airlines stocks, they realize that they cannot not make money. It is an opportunity to make a quick return," said Inga Timmerman, a certified financial planner at<a href="https://attainablewealthfp.com/"> Attainable Wealth</a> and an associate professor of finance and financial planning at California State University, Northridge."When volatility is high, the returns fluctuate much more," Timmerman said. "Some people have one to two great trades and think they can always make money. This is much harder to accomplish in normal market conditions."<h2>A passive investing strategy is better for most investors</h2>Active investing is regarded as much riskier than the<a href="https://www.businessinsider.com/personal-finance/what-is-buy-and-hold-investing-strategy"> buy-and-hold strategy</a> championed by experts and icons like Warren Buffett. Stock picking and <a href="https://www.businessinsider.com/genz-millennial-day-trading-investing-discord-server-eagle-investors-profile-2020-8">options trading</a> may give the investor more control, or some semblance of control, but returns aren't always superior to those produced with a passive portfolio that's designed to match the market. These strategies are often multi-layered and complicated transactions unfit for a beginner."Although there certainly are arguments for active management, in the end, I will sum up the research in one sentence: Active management is expensive, and it does not have a consistent track record of outperformance — actually, it has the opposite record," Timmerman said. The result of trying to beat the market is often lower returns for investors, she said. Burton Malkiel, an economist and author of the classic finance book "A Random Walk Down Wall Street" said in<a href="https://blog.wealthfront.com/the-day-trading-pandemic/"> a blog post</a> written for the online adviser Wealthfront, where he currently serves as chief investment officer, that he doesn't "confuse day traders with serious investors."Malkiel favors a passive approach to investing, where "broad diversification, rebalancing, active tax management, avoiding market timing, staying the course, and the use of investment instruments such as <a href="https://www.businessinsider.com/personal-finance/what-is-an-etf-exchange-traded-fund">ETFs</a> with very low fees" all but guarantee long-term success.Muscadin also believes a passive strategy is best for the average person investing money for a long-term goal, like <a href="https://www.businessinsider.com/personal-finance/how-to-invest-for-retirement-decades-before">retirement</a>. It safeguards you from your own emotions, which are often heightened when you're just starting out investing because it doesn't require constant attention or changes, he said."Active investing is a skill that can be learned and developed over time. For those that do it successfully, it is not an emotional exercise. In fact, successful active investors put measures in place to protect themselves from emotional decision making," Muscadin said. "If one lacks either the will, skill, or time, passive investing is likely a better strategy."It's hard to say whether the interest in active investing is a temporary byproduct of more free time and a uniquely turbulent market, or if it represents a sea change in the way the digital generation invests. But some firms are already expanding their business offerings to meet demand. <a href="https://www.businessinsider.com/personal-finance/betterment-checking-account-review">Betterment</a>, the so-called robo-adviser built on an ethos of passive investing, <a href="https://www.businessinsider.com/how-betterment-looking-to-tap-into-retail-trading-surge-robinhood-2020-7">said</a> it's considering more options for portfolio customization, inspired by Robinhood, to help users "sort of scratch that need for control." <ul class="read-more-links"><li>Read more from <a href="https://www.businessinsider.com/master-your-money" target="_blank" rel="noopener">Master Your Money</a>:</li><li><a href="https://www.businessinsider.com/how-money-saving-tactics-change-at-different-stages-of-life-2020-8" target="_blank" rel="noopener">3 people at 3 different stages of saving explain how they're working toward their big financial goals</a></li><li><a href="https://www.businessinsider.com/how-to-make-a-plan-for-your-goals-2020-6" target="_blank" rel="noopener">How to make a plan for your goals, no matter how big or small</a></li><li><a href="https://www.businessinsider.com/millennials-great-recession-student-debt-affordability-crisis-2020-1">How the American millennial is overcoming debt, the dollar, and the economy they were handed</a></li><li><a href="https://www.businessinsider.com/personal-finance/how-pay-back-student-loan-debt-options" target="_blank" rel="noopener">How to pay back your student-loan debt, no matter where you start or what type of loans you have</a></li></ul>

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