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Smart is the New Rich: Money Guide for Millennials



Smart is the New Rich: Money Guide for Millennials

Christine Romans

ISBN: 978-1-118-94935-1 March 2015 224 Pages


Time is on your side—smart money management for Millennials

Smart is the New Rich: Money Guide for Millennials is an interactive, step-by-step guide to all things money. From credit, student debt, savings, investing, taxes, and mortgages, CNN's chief business correspondent Christine Romans shows this newest generation of earners how to build wealth. You'll learn the old-fashioned approach that leads to a healthier financial lifestyle, and open the door on a straightforward conversation about earning, saving, spending, growing, and protecting your money. You'll learn how to invest in the stock market or buy a home, even if you are still paying off student loan debt. Romans offers expert insight on the "New Normal," and why the rules of the credit bubble—the one you were raised in—no longer apply. Checklists and quizzes help solidify your understanding, and pave the way for you to start putting these new skills into action.

For thirty years, the financial rules for life revolved around abundant credit at the ready. A quick look around makes it obvious that those rules no longer work, and Millennials just now coming of age and entering the workforce need a new plan to build a solid financial foundation and healthy money habits. This book puts you on the right track, with step-by-step help and expert guidance.

  • Learn what you should ask yourself before spending any money
  • Revisit some old money rules that are actually good habits
  • See simple rules for managing student debt
  • Learn how to talk about money with friends, dates, and parents
  • Find out what makes a Millennial successful in the workforce

The economy is out of recession and growing, but many young people feel left out of the recovery. It's why smart spending, saving, and debt management is so critical right now for them. A smart money plan is no longer a "nice to have" extra, it's mandatory. Smart is the New Rich: Money Guide for Millennials is your guide on how to use time and some good money manners to build wealth.

Preface xi

Acknowledgments xv

Chapter 1 How to Think About Money: Budgeting Basics 1

Pay Yourself First 6

How Much Should You Save? 8

The Rainy-Day Fund 12

Roadblocks to Money Success 15

The Holiday Red Flag 15

Your Money Quiz 16

Chapter 2 College Investment 19

The Million-Dollar Payoff 21

It’s Cheaper to SaveThan Borrow 23

Four Ways to Keep College Costs Down 24

WhatDo YouWant to Be When You Grow Up? 27

Not All Degrees Are Equal 31

Chapter 3 Managing Debt 37

Paying Off the Debt 39

Interest Rate Triage 42

A Safety Net for Low-Income Grads 43

Public Service Loan Forgiveness 45

Live Like a Student 45

Chapter 4 Job Market Fundamentals 49

The Long Healing Process 51

Fastest-Growing States 52

The College Degree Advantage 54

Chapter 5 Millennials at Work 59

Resume #Fail 64

You’ve Got Two Minutes 66

The Hidden Jobs Market 67

Don’t Call Them Soft Skills 70

Keep Your Eye on the Ball 72

Lean In or Lean Back 72

Online Tools to Help Set You Apart 77

Chapter 6 House Money 81

Missing the Real Estate Rebound…So Far 84

Generation Renter 86

Get Ready to Buy 89

Mortgage Rates 91

Location, Location, Location 92

Affordability 93

Living at Home 93

Chapter 7 Family Money 97

Dating and Money 99

The “Talk” 102

What Kind of Debt? 104

Piggy Bank Parents 107

Friends and Finances 108

Crowdfund Our Wedding 109

Chapter 8 Understanding Investments 111

Getting Started: Tax-Advantaged Retirement Accounts 115

Time Is a Four-Letter Word 116

No 401(K)? Invest Anyway 120

Building Blocks 123

Chapter 9 Credit Karma 129

Debit Cards 130

Overdraft Protection 131

So You Want a Credit Card? 131

What Is the Credit Score? 133

Expensive Credit Monitoring 135

What Is the Fed? 137

Time to Buy a Car 138

Appendix A Web Resources 141

Appendix B Cover Letters: The Good, the Bad, and the Ugly 145

Appendix C PayScale 2014–2015 College Salary Report 153

Notes 193

About the Author 199

Index 201