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Next Level Money: 6 Steps for Millennials to Master Personal Finance

May 31, 2024

In a world where financial advice is often aimed at either the extremely wealthy or those struggling to make ends meet, millennials find themselves on a unique middle ground. We have been through the highs of economic growth and the lows of global recessions. 


The Great Recession caused a massive economic retraction just as our generation was coming of age and ready to rock the working world. Suddenly, older generations extended their working years and crowded millennials out of the job market. And while job offers became rare, student loan repayments came due.

Millennials have often been labeled as the generation of renters, travelers, and gig workers, typically prioritizing experiences over possessions. But as you mature, your financial goals evolve. Now is a time to look at building sustainable wealth, securing your future, and balancing the costs of raising a family with your own personal and professional aspirations.


Now, as you step into your 30s and 40s, understanding personal finance for millennials is crucial to achieving your goals. Embrace strategies that cater to the unique challenges and opportunities related to millennials and money today. 


Millennials and Money: 6 Steps to Master Personal Finance


Below are six essential steps in millennial finance for those ready to kickstart their journey toward advanced financial mastery. 


Step 1: Master Financial Basics


The first step towards taking your finances to the next level is solidifying your financial foundation. This involves:

  • Budgeting wisely: Use apps or traditional spreadsheets to track your expenses to understand where your money goes each month and identify areas for cost-saving. Millennials are known for wanting their investments to align with their values. Consider prioritizing what matters most to you as a first step in budgeting. This could mean allocating funds for charitable donations or investing in energy-efficient solutions.


  • Building an emergency fund: Aim for three to six months' worth of living expenses, stashed away in a high-yield savings account for unforeseen circumstances. You’ll be surprised at how much an emergency fund can lighten the mental load of day-to-day living.


  • Tackling debt: Prioritize high-interest debts such as credit cards first, then student loans, and other personal loans. You can also use strategies such as consolidating debt under a lower interest rate or even calling your creditors to negotiate lower rates after consistently making on-time payments. 


Step 2: Invest in Your Future


Once your foundations are strong, start looking towards the future with investing.

  • Retirement savings: If you haven’t already, start contributing to a retirement account, be it a 401(k), an IRA, or any other available option. Always take advantage of any employer match, as they essentially provide free money towards your retirement.

    Consider putting a strategy in place to boost your savings as you advance in your career. Every time you receive a pay raise, commit to increasing your contributions. You won’t give yourself time to get used to having more money if you send it directly to savings.

  • Stock market: Investing in the stock market can be a great way to grow your wealth over time. Consider low-cost index funds or ETFs as a start, and remember, it’s about time in the market, not timing the market. You can review your investments annually to rebalance and maintain diversity in your portfolio.

  • Real estate: For those interested in tangible assets, real estate can provide both rental income and value appreciation. However, it requires significant capital and management unless you opt for real estate investment trusts (REITs).


Step 3: Advance Your Career


Increasing your primary income source is another crucial step. This might involve:

  • Continuing education: Certifications, workshops, or advanced degrees can boost your employability and potential income. Let your boss know you want to grow, and then seek specific courses. You’ll be most successful in getting your employers to pay for a program if you can articulate what benefits they receive from investing in you.

  • Networking: Build relationships within your industry. Networking can open doors to job opportunities and collaborations you might not find otherwise. Even if you aren’t looking to change jobs, networking can be a key to helping you grow where you secure raises and promotions. When you talk to other professionals in your industry, they will undoubtedly share experiences that allow you to grow in your own job.

  • Negotiating salaries: Don’t shy away from negotiating your salary. Know your worth and the market rates for your job function and geography. The best time to negotiate a salary is when you are first hired, but you should bring it up at each annual review. Come prepared with a list of all the ways you have helped your company’s mission and bottom line over the last year. 


Step 4: Maximize Your Tax Advantages


Maximizing your tax savings involves several strategies you can use to reduce your taxable income and increase your tax benefits. Here are some common ways to achieve this:


  • Maximize retirement contributions: Contributing to retirement accounts like a 401(k) or an IRA can reduce your taxable income. These contributions are typically made pre-tax, which can lower your tax bill.


  • Use Health Savings Accounts (HSAs): If you have a high-deductible health plan, you can contribute to an HSA, which offers tax-free contributions, growth, and withdrawals for qualified medical expenses.


  • Claim education credits: If you're paying for education, you might qualify for education credits like the American Opportunity Credit or the Lifetime Learning Credit, which can directly reduce your tax bill.


  • Check for eligibility for credits and deductions: Many tax credits and deductions are available depending on your situation, like the Earned Income Tax Credit, Child Tax Credit, and deductions for energy-efficient home improvements.


  • Consider charitable contributions: Donating to charity can not only be personally rewarding but also offer tax deductions. If you donate appreciated stocks or assets, you might avoid capital gains tax in addition to receiving a deduction.


Step 5: Diversify Your Income


Relying on a single source of income can be risky. Diversifying your income streams can provide financial security and extra funds to reinvest.

  • Side hustles: Whether you freelance, consult, or start a small business, find something you're passionate about that can generate additional income. Tailor it to your financial goals and your time and energy constraints.

  • Passive income: Investments in dividend-paying stocks, bonds, or rental properties can generate regular, passive income. Online platforms also offer ways to create and sell digital products or courses, requiring an initial time investment with the potential for long-term gains.


Step 6: Protect Your Wealth


As your assets grow, protecting them becomes more important.


  • Insurance: Ensure adequate coverage, from health to home and life insurance. As your financial situation evolves, so should your coverage.

  • Estate planning: It might seem premature, but setting up a will, a living trust, and healthcare directives can ensure your assets are handled according to your wishes, should anything unexpected happen.


Partner with Five Pine Wealth Management’s Expert Advisors


The financial world is constantly evolving, it’s important to stay informed about emerging financial trends, new investment opportunities, and economic shifts, and adapt your strategies accordingly.


While the DIY approach is popular, consulting with a financial advisor can provide personalized advice tailored to your specific circumstances. A good advisor can help you navigate complex financial landscapes, make informed investment choices, and plan for future needs, such as children’s education or retirement.


The team at Five Pine Wealth Management is ready to help. To set up a complimentary consultation with a team of experienced financial advisors who will work with you to take your personal finances to the next level, send us an email at
info@fivepinewealth.com or give us a call at 877.333.1015.

March 28, 2025
Despite always hearing about the aging of America and the baby boomer generation, did you know the millennial generation is actually the largest age group in the country? Born between 1981 and 1996, millennials outnumber baby boomers post-WW2, with about 72.2 million millennials in the United States, as of 2023. The media often highlights millennials' financial challenges: mountainous student loan debt, a competitive job market, unaffordable housing, and credit card debt. There’s no doubt it’s been more challenging for millennials to save and gain a stable financial foothold compared to previous generations. Yet despite these hurdles, millennials have financial opportunities available to them that previous generations did not. Millennials came of age with the rise of the internet and advances in technology; they’re digital natives, incredibly tech-savvy, and well-positioned to master the digital era they live in. Millennials’ unique position in history gives them advantages when it comes to investing, starting a business, and increasing their financial literacy. Millennials and Investing Millennials are changing the game when it comes to investing—innovative financial platforms and investment products have helped to evolve the investment landscape, and have made investing more accessible than ever before. As a millennial, embracing this innovation can help move you closer to achieving your goals and building a financially secure future. Impact Investing Millennials are known for being socially conscious with their spending and supporting brands and companies that align with their values. This desire to make a difference often extends into their investments—intentionally choosing to invest in companies that reflect their values and promote the causes they support. Through impact investing, you can support positive global change while also working toward your financial goals. Impact investing can be done through investing in Environmental, Social, and Governance (ESG) investment funds, or through pursuing a strategy of Socially Responsible Investing (SRI). ESG funds focus on businesses that have strong environmental policies, social impact initiatives, and good governance. These funds have become increasingly popular with investors, like millennials, who want to support companies that prioritize sustainability and ethical practices. SRI focuses on investing in companies that promote environmental sustainability, social justice, and corporate ethics. SRI can also exclude investing in companies that engage in activities that are considered negative or harmful—tobacco, alcohol, fossil fuels, firearms, or the defense industry. Cryptocurrencies and Decentralized Finance Cryptocurrencies are newer investment frontiers that techie millennials can be more comfortable exploring than older generations. Crypto such as Bitcoin and Ethereum are digital currencies that operate on blockchain technology , which provides increased transparency and security. Crypto investments can be risky, but can also offer high rewards. Decentralized Finance (DeFi) platforms also leverage the security and transparency of blockchain technology to offer decentralized financial services and transactions. DeFi platforms provide opportunities for lending and investing without traditional intermediaries like banks and other centralized institutions. For millennials, DeFi represents a cutting-edge way to engage with financial services and they can offer more control and potentially higher returns than traditional methods. The Power of Time One of the biggest advantages millennials have when it comes to investing is time. If you start investing early, you can benefit from compound interest and long-term investments, which can significantly boost your returns and help increase your wealth. Compound interest is the process where the interest you earn on an investment is reinvested, which generates more interest. The longer your money is invested, the more it can grow. Even small, consistent contributions to your investment portfolio can accumulate substantial wealth over time. Having a long-term investment horizon allows you to ride out market volatility, and capitalize on growth over time. By not reacting to short-term market fluctuations, you can achieve more stable returns. Long-term investing is a powerful tool that can help you build a secure financial future. Millennial Entrepreneurship This generation’s core characteristics set them apart as innovators and business creators. As digital natives, millennials have a strong grasp of technology which allows them to leverage digital tools such as social media marketing, e-commerce tools, and data analytic platforms to grow their businesses exponentially. You’ve likely seen peers thrive in their ventures through their use of social media, which has become a critical tool for marketing, brand building, and customer engagement. Community-building is also highly valued among this generation—the use of LinkedIn alone helps entrepreneurs connect with fellow collaborators, business owners, and mentors. Similar to aligning your investments with your values, you can easily integrate your ethical beliefs into your business ventures. Ethical business practices such as developing eco-friendly products, creating an inclusive workplace culture, and advocating for fair trade processes can make a positive impact and build loyal customer bases. Millennials and Financial Literacy The millennial generation has more resources than ever to increase their financial literacy. Free online finance courses are easy to access, readily available, and enable you to educate yourself so that you can make smart financial decisions to help you achieve your goals. Personal finance apps like Mint and YNAB (You Need a Budget) can also increase your financial literacy by helping you understand and manage your finances more effectively. They offer features like budget tracking, expense management, and financial goal setting to help you be in full control of your finances. Finance apps make it easier for you to stay on top of your financial health and make informed decisions in managing your money. Work with Us to Reach Your Goals  Ever-evolving technology has transformed the financial landscape significantly over the last few decades and millennials are more prepared to take advantage of that transformation than any generation before them. While you can take charge of your finances on your own, working with a financial advisor can help you find your path and stay the course of your journey toward financial security. Financial advisors can provide advice that is tailored to your individual circumstances, to better meet your unique needs and objectives. At Five Pine Wealth Management , we’re committed to helping you create a customized financial plan and investment strategy to help you reach your current and future goals. As fiduciary financial advisors, we always act in your best interest in every step we take with you on your financial journey. We also offer virtual financial planning for millennials looking to fit financial planning into their own schedules. To see if we can help you, email us or give us a call at 877.333.1015 today to schedule a meeting.
March 21, 2025
Getting a raise is an exciting moment in your career and financial journey. Maybe you’ve gone through an executive-level position change and received a 10% pay bump or an internal promotion yielded you an additional 15%. Regardless of how you got your raise, you’re now in a unique position to move the needle on your long-term financial goals (and maybe splurge a little, too). But before you pull the trigger on that major purchase you’ve been eyeing, it’s important to have a long-term plan for the extra money in your paychecks. Even a significant raise can erode quickly if you suddenly upgrade your home, start vacationing like a celebrity, or snap up that Mercedes you’ve been eyeing. Below are our top five strategic wealth opportunities for you to consider the next time you receive a raise. First Things First: Understand Your New Numbers A 10% or 20% raise may sound like a huge boost, but not all that money will land in your bank account. Before making any financial moves, it’s important to calculate your new take-home increase after taxes and contributions. For example, if you receive a $25,000 raise on a $175,000 salary, you might expect $2,083 more per month. However, after accounting for federal taxes, state taxes, and other deductions, your actual monthly increase might be closer to $1,500. Knowing your actual take-home pay helps you set realistic expectations and make informed financial decisions. Getting a Raise: 5 New Strategic Wealth Opportunities For high-income earners, getting a raise isn’t just more spending power—it’s an opportunity to build lasting wealth while minimizing taxes. Instead of falling into lifestyle creep, consider these five wealth-building strategies to maximize your higher income. 1. Grow: Maximize Tax-Efficient Investment Opportunities With your increased income, you now have more opportunities to maximize tax-advantaged accounts and investment vehicles. For 2025, you can contribute up to $23,500 to your 401(k), plus an additional $7,500 if you're 50 or older. If you weren't maxing out your contributions before, your raise provides an excellent opportunity to reach these limits. Let's say you direct $750 of your new monthly take-home pay to your 401(k). You not only build retirement savings but could save approximately $2,160 in federal taxes annually if you're in the 24% tax bracket. Consider increasing your retirement and investment contributions by the same percentage as your raise. For example, if you receive a 10% raise, aim to increase your contributions by 10% of that raise. This incremental adjustment will help ensure you can maintain the lifestyle you're accustomed to when you retire. 2. Save: Optimize Tax Strategies to Reduce Liabilities A higher income often means entering new tax brackets, making tax efficiency more crucial than ever. Without proper planning, you might find a significant portion of your raise going to Uncle Sam instead of building wealth. Consider switching to a high-deductible health plan (HDHP) for your family, which can lower your premiums while giving you access to a Health Savings Account (HSA). In 2025, you can contribute up to $8,550 for family coverage , potentially saving around $2,000 annually in taxes. Additionally, the money in your HSA grows tax-free and can be withdrawn for qualified medical expenses without tax liability. 3. Diversify: Explore Alternative Investments A higher income can open the door to new investment opportunities, allowing you to diversify beyond traditional stocks and bonds. Alternative investments like real estate investment trusts (REITs) can provide exposure to different asset classes, potentially offering both passive income and long-term appreciation. These types of investments often move independently of the stock market, helping to balance overall portfolio risk. They can also offer lower barriers to entry compared to direct property ownership or other traditional alternatives. The key is to align your investments with your risk tolerance and liquidity needs while taking advantage of opportunities that complement your existing strategy. 4. Strengthen: Build Your Estate With more income comes greater potential for building generational wealth. Investing half of your $25,000 raise annually for 20 years with a 7% return could add over $500,000 to your estate. This makes it essential to have proper structures in place for efficient wealth transfer. To ensure your wealth transfers efficiently, consider: Trusts to protect assets and minimize estate taxes Life insurance strategies for wealth preservation Family-limited partnerships for multi-generational wealth planning These structures become increasingly valuable as your wealth grows. 5. Impact: Upgrade Your Philanthropy & Social Impact There's something powerful about reaching a place in life where you can give back meaningfully. Beyond the personal satisfaction of a higher income, this new chapter brings an opportunity to create lasting positive change in your community and the causes closest to your heart. Maybe you still remember the community college professor who believed in you when you weren't sure about your path. Now, twenty years later, by creating a donor-advised fund (DAF) to support student scholarships, you're not just making education more accessible—you're giving another student their own life-changing mentor. By thoughtfully structuring your charitable giving through vehicles like DAFs or qualified charitable distributions from retirement accounts, you can maximize both the impact of your generosity and the tax benefits that come with it. After all, effective philanthropy isn't just about giving money away—it's about creating meaningful change in the ways that matter most to you. Red Flags: Top Signs of Lifestyle Creep While getting a $25,000 raise provides excellent opportunities for wealth building, it's important to avoid (too much) lifestyle creep. That upgraded car lease might cost an extra $200 monthly, the bigger house another $800 in mortgage payments, and the premium credit card's annual vacation package another $400 monthly in travel costs. Before you know it, your entire raise can get absorbed by new expenses. While there's nothing wrong with enjoying the fruits of your hard work, the key is being intentional about which lifestyle upgrades truly matter to you. Here are some common warning signs that lifestyle creep might be eroding your raise: Your monthly expenses rise automatically with your income You upgrade multiple lifestyle aspects at once (housing, car, travel, dining) Your savings rate remains unchanged despite higher earnings Luxury spending becomes your new normal Your cash reserves aren’t growing despite a higher paycheck Instead of automatically increasing spending across the board, take time to identify the one or two changes that would bring the most joy and fulfillment to your life. Then, invest the rest. Put Your New Money to Work with Five Pine Wealth While these strategies focus on wealth building, don't forget to invest in yourself through continued education, health, and meaningful experiences. The key is finding the right balance between growing your wealth and enjoying the fruits of your success. Whether you've recently received a raise or are anticipating one soon, having a plan in place can help you maximize this opportunity. Our team can help you evaluate which of these strategies would work best for your unique situation and create a customized plan to help you reach your financial goals. At Five Pine Wealth Management , we can help you implement these strategies in a way that aligns with your personal goals and values. To learn more about making the most of your increased income, schedule a meeting with us. Email us at info@fivepinewealth.com or call us at 877.333.1015.  Let's work together to transform your raise into lasting wealth.
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