Self-growth
Business & Career
Success
Communication
Healing
Relationships
Psychology
HappinessYou’ll learn
- What an excellent credit score looks like
- Criteria for the ideal bank
- Ways to tackle debt
- How to talk about money
Table of contents
first KEY POINT
Challenge your settled take on money
The topic that scares away most millennials is money talk. It sounds like an absurd choice. Why get upset or anxious over such a vital element of life? Money has become a world religion, yet people discuss it in hushed voices or even consider it taboo. Do they want to conceal the fact that they lack financial competence? Money management can be overwhelming, and humans need to be more mindful of handling it.Building a steady relationship with money means securing a rosy future. Content retirees sipping on their pina colada somewhere on the Mediterranean sea — this could be you and your spouse. The dream may become a reality if you stop associating money management with perplexing numbers and bloodcurdling calculations. Yes, it involves a little math, but the core is a positive attitude and farsightedness when making decisions.Financial perspectives are deeply rooted in childhood. Kids watch their parents when dealing with expenses, talking about earnings (or, on the contrary, cold-shouldering this topic), and granting them an allowance.
People project their childhood experiences and lessons learned in their households on how they treat money personally and professionally.
A vivid example is seeing parents having arguments over money. Such scenes may convince children that finances bring only negativity into relationships and require extreme caution. Another case would be living in a posh family and having no money concerns — therefore, no experience dealing with challenging situations. If a financial predicament occurs, it may catch young adults off guard. Take a moment to reflect on your past to determine which pattern you inherited — you will then identify vulnerable points and work on them. This summary is a lucky strike if you are in your 20s and 30s. It will lead you through the basics of money management and transform your attitude toward budgeting. The earlier you get on the path to financial proficiency, the brighter your future will be.
second KEY POINT
Progress is impossible without mastering the basics
There are three archetypes of people when it comes to money management. The first group is called YOLOFOMO. It is the abbreviation for ‘You Only Live Once’ and ‘Fear Of Missing Out.’ These are chill people and fun to hang around. The prominent feature about them — they couldn't care less about money and live their life as if tomorrow will never come. It most probably will, and then they will need to face the music — financial instability.The name of the second group, Guarded Optimists, speaks for itself. They stay cheerful and upbeat — there is no need to rush; they’ll catch up with savings and retirement funds later. The clock is ticking, and what are the chances that the future will be as cloudless as the present?You may refer to the third type of person as Dreaming About Retirement. The money situation for them is of paramount importance. Therefore, they are frugal to the extreme point of not indulging themselves with Friday drinks or a weekend trip to the seaside. Financial security is unquestionable; however, a little party never killed anybody.You may represent one of these types of people, or you can be a mixture — there is no shame in that; you are on the right track if you want to master financial literacy.Here are some basic notions to familiarize yourself with:• Net worth — its calculation is straightforward — you should subtract liabilities from assets. Remember to include valuable items you possess as your 'assets.' Liabilities are any debt you owe.
• Debt-to-income ratio — determines how much you are in the red (monthly debt divided by gross income per month).
• Emergency fund — a unique backup plan in case of hardships — whether your employer showed you the door or any damage happened to your property. This money should be good enough for three to six months of living, six to nine for freelancers. With this plan B on hand, you have enough time to evaluate the situation, regroup and move on.
• 401(k) plan — don’t forget about the autumn of life and apply for this program at your workplace. The standard procedure is to add part of your monthly salary to your retirement savings account.
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first KEY POINT
Define your budgeting style
second KEY POINT
Be picky with your bank — you will reap the rewards later
third KEY POINT
An excellent credit score opens doors to the best offers
fourth KEY POINT
Transform the way you deal with debt into a winning strategy
fifth KEY POINT
A student loan is your first life lesson on financial literacy
sixth KEY POINT
Be candid when talking about money with those around you
seventh KEY POINT
Conclusion
Related summaries
Frequently asked questions
What is Broke Millennial: Stop Scraping by and Get Your Financial Life Together about?
Broke Millennial: Stop Scraping by and Get Your Financial Life Together, authored by Erin Lowry, is a practical guide aimed at millennials struggling with personal finance. The book provides relatable anecdotes and actionable advice on budgeting, saving, and investing to help young adults gain control over their financial futures.
What are the key takeaways from Broke Millennial: Stop Scraping by and Get Your Financial Life Together?
Key takeaways from Broke Millennial include the importance of understanding your spending habits, the power of setting financial goals, and the necessity of planning for emergencies. Erin Lowry emphasizes creating a budget that works for your lifestyle and offers tips for overcoming common financial obstacles faced by millennials.
Is Broke Millennial: Stop Scraping by and Get Your Financial Life Together worth reading?
Yes, Broke Millennial is worth reading for anyone who wants to improve their financial literacy and management skills, particularly millennials. Erin Lowry's relatable storytelling and practical advice make complex financial concepts accessible and engaging.
How many pages is Broke Millennial: Stop Scraping by and Get Your Financial Life Together and when was it published?
Broke Millennial: Stop Scraping by and Get Your Financial Life Together is 256 pages long and was published on April 4, 2017. This concise length makes it an easy read for those looking to enhance their financial knowledge quickly.
How can Broke Millennial: Stop Scraping by and Get Your Financial Life Together help me with my finances?
Broke Millennial helps readers by breaking down personal finance topics into manageable sections, providing strategies for budgeting, savings, and debt management. With practical exercises and relatable insights from Erin Lowry, the book equips you with the tools to make informed financial decisions and achieve financial independence.