Instagram influencer Helen Lu tells her followers to focus on retirement accounts, not Robinhood.
She touts the benefits of “boring” investing like index funds and 401(k)s.
“Many people have become millionaires from index fund investing,” she said in an Aug. 5 post.
One millennial influencer who calls herself the “Money Minimalist” says her thousands of followers should delete Robinhood and focus on long-term investing like retirement accounts instead.
Helen Lu, the 27-year-old influencer, told Fortune in an interview that Robinhood has more people interested and curious about investing, “which is great.”
“But if someone would rather set up that app than their 401(k), I tell them to delete the app,” she said.
The problem with Robinhood, Lu told Insider in an Instagram message, is that it was “designed to make investing feel like gambling.”
With retail traders joining the markets in droves amid the COVID-19 pandemic, Robinhood has come under scrutiny for gamifying investing – a claim that the app’s chief Vlad Tenev has denied, saying instead that it’s made investing easier for everyday people.
In March, Robinhood removed its digital confetti feature – which popped once users made their first trade – after the company faced scrutiny for its game-like features during a congressional hearing following the GameStop saga. Robinhood did not immediately respond to Insider’s request for comment for the story.
The craze around meme stocks like GameStop this year has pushed new, younger-skewing investors into the stock market, according to a previous report from Fidelity. Those investors are now turning to something familar to learn how to invest: social media.
Lu, who has 16,000 Instagram followers, takes a more traditional approach to investing, which is quite the opposite of many finance influencers who teach momentum trading and speculative investing.
For example, in one post she advises teens to open a roth IRA, research index funds, and hold investments long term. “Many people have become millionaires from index fund investing,” she said in the Aug. 5 post.
“Buy and hold. Long-term investing. I like telling people that boring growth is better than exciting loss,” she told Fortune.
In messages to Insider, she said she uses Vanguard for index funds and recommends the book “The Simple Path to Wealth” by J L Collins for anyone looking to start investing. She also touted the benefits of retirement accounts like a 401(k).
“You can lower your taxable income, pay less in taxes, AND get an employer sponsored benefit,” she said. “That doesn’t happen when you invest with Robinhood.”
Could 99% of investors be wrong? As it turns out, yes. According to a national poll conducted by CNBC and investing app Acorns, only 1% of Americans hire help to manage their finances. That number goes up with age, but just barely: 2% of those 55-64 do, and 4% of those 65 or older. Obviously, when you’re young and broke, working with a pro is silly. There’s not much to manage, and you’ve got all…
Cryptocurrencies have exploded in popularity over the last several months. Of course, the most popular remains bitcoin.
But some other smaller cryptos are gaining serious steam as well, as the concept of digital currencies continues to seep into the public consciousness.
However, it can be difficult to know which cryptocurrencies to invest in, or whether you should in the first place. There are currently thousands of different types of coins on the market. And some – like dogecoin, which was founded as a joke – don’t appear to be serious. Others, like some built on the Ethereum blockchain, appear to have better use cases.
Crypto is an esoteric domain – its intricacies can be difficult to understand, especially for those new to the space.
To help cut through the noise, Insider has talked to several experts about which altcoins – cryptocurrencies other than bitcoin – they believe have the best upside. These experts also described the fundamentals and technicals that make these altcoins attractive. Their views are shared in the articles below.
Ran Neuner, host of Crypto Banter on Youtube and CEO of Onchain Capital
Ran Neuner, the cofounder and CEO of blockchain investment fund Onchain Capital, is very excited about one crypto right now: solana (SOL). He told us why the ethereum competitor could be the biggest opportunity in crypto since 2018.
Crypto technical analyst Adrian Zduńczyk says some altcoins due to outperform bitcoin in a “legendary” way. Zduńczyk is the founder and CEO of the Birb Nest, a trading platform. He shared five altcoins with us that he thinks could surge 10-100 times.
Matthew Sigel is the head of digital assets research at VanEck.
Ethereum is the second-biggest cryptocurrency at the moment, sitting behind bitcoin. But it has problems like expensive transaction fees. Matthew Sigel, head of digital asset research at VanEck, shares three altcoins to rival ether.
Ethereum’s major upgrade in early August led to a 9.6% intraday price spike, and investors haven’t yet sold the positive news. That’s one reason why David Gokhshtein is bullish. He also told us his theses for six smaller altcoins he owns.
A local business in El Salvador that accepts bitcoin payments.
Various cryptos tumbled on Tuesday September 7 as El Salvador officially adopted bitcoin as legal tender. By the following morning, more than $3.25 billion in crypto positions had been liquidated over 24 hours, affecting more than 300,000 traders, according to Bybit. We asked experts what was driving the sell-off, and where they recommended buying dips.
Dogecoin is a ‘meme’ cryptocurrency, seemingly created as a joke
When dogecoin rose over 12,000% to $0.68 earlier this year, it shocked the investing community. It has since cooled off, though its price has picked up in recent weeks. It now sits around $.027. What will it do next? Chainalysis chief economist Philip Gradwell broke down why he think it will go to $1.
Insider recently hosted a live webcast featuring two crypto experts. They broke down their views on everything from the recent slump to the possibility of regulation.
Lyn Alden is the founder of Lyn Alden Investment Strategy
As some altcoins have shown, there is potential for huge appreciation in crypto outside of bitcoin. David Gokhshtein is one investor that’s looking to take advantage of these opportunities. He shared two altcoins he’s bullish on.
Mack Lorden, left, and Lucas Dimos are TikTok crypto influencers.
The broader crypto space just went through a rough patch after huge gains earlier this year. Like any asset class, it has its bull and bear markets. When crypto bear markets do come, crypto influencers Mack Lorden and Lucas Dimos told us that six altcoins in particular help them hedge losses.
Many investors are excited about the Ethereum network’s uses.
Many altcoins are built on top of the Ethereum blockchain. Aya Kantorovich, the head of institutional coverage at crypto exchange FalconX, shared nine coins built on top of the ethereum blockchain that she thinks have solid use cases.
“I personally always like coins with application,” Kantorovich said.
But it can also be a difficult thing to get started in, with often-prohibitive down payments and marketplace competition driving up prices to unattainable heights. The process can also be intimidating to first-time investors financially, legally, and in terms of time commitment.
But real estate investing doesn’t have to be exclusive and convoluted: there are tried and true strategies investors can use to begin building a portfolio of properties even if they don’t have a pile of cash ready to deploy. We know because we’ve talked to people who have put them into action.
Below we’ve compiled several stories highlighting the various methods that investors have successfully used in the real estate world.
A house’s real estate for sale sign shows the home as being “Under Contract” in Washington, DC, November 19, 2020.
Arguably nobody does more for providing investors with the material they need to get started in or continue building their real estate portfolios than Brandon Turner. Turner is the founder of BiggerPockets, a site that educates and provides a platform for investors in the space. He also co-hosts the “BiggerPockets Podcast,” which highlights successful real estate investors.
In May, we wrote about an episode of Turner’s podcast in which he unpacked six steps to buying a first property within three months. Turner bought his first property when he was 21.
Step one? Figure out what’s motivating you to get into real estate investing.
It took Kumar Sadaram a few years to find the strategy that worked best for him. But once he did, he repeated it again and again to build up a portfolio of over 50 properties.
Sadaram now makes more money per year from rental income from the properties than he did when he was an IT consultant – a job which he quit for good three years ago.
In addition to sharing with Insider his preferred strategy, he shared his three best tips for those looking to break into real estate without large sums of money. He also shared his advice for overcoming being intimidated by investing in the space.
Sam Primm used a private lender for his first property, then transferred his loan to a mortgage.
He now uses hard-money lenders to buy and flip property, while his rental income pays off the mortgages. In an interview, he explained the process for putting these deals together.
Money is perhaps the biggest hurdle – whether perceived or not – for many when it comes to real estate investing. But there are ways to invest without being rich first.
Mike Bryant has used a very specific strategy that has helped him acquire 10 properties without first needing to dip into his own funds.
“Without putting a nickel into any of these, I have a portfolio – between what I’ve sold already last year and what I haven’t sold yet – of more than a half a million dollars of equity, at least on paper, from what I can glean is the market value versus what I owe on these properties,” Bryant said on an episode of the “BiggerPockets Podcast.”
Deb Cleveland is a self-taught 30-year real estate investor and house flipper.
It’s the point of making any investment: returning a profit. To do so, you have to identify assets that are being undervalued by the market. Easier said than done.
Deb Cleveland has done it. An expert with three decades of experience and a portfolio of 80 properties, she shared with Insider how she goes about finding undervalued properties to rake in big returns.
One reason investors can be hesitant to get into real estate is because of amount of time they may think they have to put into maintaining a property. But Mike Webb proves that it can still be done, even while working a full-time job.
Another reason that gives people pause is financial risk and the work that goes into finding favorable deals. Webb broke down for Insider how he finds deals in a red-hot housing market.
Again, finding favorable deals can be difficult, especially today. Many variables are involved, like regional population and job growth.
Sharon Tseung and Sean Pan, a couple in their 30s with 21 rental units, recently shared with Insider their approach to underwriting – analyzing all of the financial aspects of a deal. They also shared how they go about financing their properties.
Aaron Amuchastegui, a real-estate investor who navigated the 2008 crisis but took a serious financial hit in 2013, revived his portfolio in just five years’ time.
Buying foreclosed homes at auction, Amuchastegui’s strategy focuses on “courthouse step” deals, and he prioritizes a long-term investment plan focused on single-family Texas home rentals rather than quick flips.
In January, we spoke to Amuchastegui about how he’s built a multimillion-dollar portfolio that then stood at 295 units, with 24 more properties in escrow at the time. Here’s how he did it.
Mike Hills has developed a property portfolio worth over $8 million, and he credits his success to “house hacking” – a strategy for multifamily rental properties in which an investor lives in one of their units while collecting rent from the others.
Hills has spent the past 19 years developing an expansive portfolio, and in October told Insider he now owns a condo, townhouse, duplex, quadplex, apartment, trailer park, and eight single-family homes.
Doubtful that he’d ever want to retire, he said he could. And he shared the strategy he used to maximize his portfolio.
After a 20-year career at Wells Fargo, Tony Julianelle decided it was time for something new.
Now, he’s CEO of Colorado-based property management firm Atlas Real Estate, where he has developed a personal property portfolio worth around $3.5 million and counting, he told Insider last year.
Focused on accumulating a portfolio of wealth-generating assets he can pass to his children, Julianelle’s investment strategy is grounded in buying and holding real estate in a long-term, appreciating market.
Follow the broader real estate investing space here.
Having a clear goal is the first step to making smart investments.
katleho Seisa/Getty Images
Investing pros Ashley Tran and Kenneth Chavis IV joined Insider’s Master Your Money Clubhouse event.
They discussed DIY investing and offered advice for beginners using online brokerages.
Both experts recommended being confident in your “why” and your goals before investing.
This article is part of series focused on millennial financial empowerment called Master Your Money.
If you’re thinking of taking investing into your own hands, you’re not alone.
The year 2020 was a big one for first-time DIY investors (also known as “retail investors”). Of the investors who opened brokerage accounts in 2020, 66% had never had a taxable investment account before, according to a study by the FINRA Foundation and NORC at the University of Chicago.
But DIY, or self-directed, investing through online brokerages differs from other options you could use, like full-service financial firms or automated advisors.
At a recent Insider Clubhouse event, “DIY Investing for Beginners” – part of our Master Your Money series presented by Fidelity – speakers Ashley Tran, team leader of Investment Solutions at Fidelity, and Kenneth Chavis IV, certified financial planner at LourdMurray, emphasized why it’s important to start with a goal or an objective before you begin DIY investing through an online brokerage account.
Choose an objective before you choose a security to invest in
“It can feel really overwhelming when you start diving into investments,” Tran said during the event. “The first piece of advice that I would give is: Make sure that you feel really educated and confident about what you’re investing in and why.”
She recommends starting with a goal first for your account and money. Goals, Tran added, might include retirement, saving up for a home, or establishing an emergency fund.
When it comes to investments, you’ll have several options.
“There’s a lot of different things you can purchase in the market,” Tran said. There are stocks, she continued, which are like a piece of equity in a company, as well as mutual funds and exchange-traded funds, which she described as baskets of securities that give you exposure to a lot of different companies with a shared commonality.
Chavis added that your investment portfolio may change depending on your intended time horizon, meaning you might invest in more- or less-risky securities depending on when you think you’ll need access to your money.
Investment taxes can vary depending on how long you hold an asset
Once you have your “why” – or the reason you’re investing – you’ll want to consider the tax implications of trading.
“For folks that are really wanting to play the stock game [or] maybe get their feet wet and do a good amount of trading, both with buying securities and then selling them, there are tax implications for that,” Chavis said.
He made the distinction between two different types of taxes retail traders may face:
Short-term capital gains taxes: “If you buy a position and hold it for less than one year, you’d be subject to what’s known as short-term capital gains,” Chavis said. That essentially means you’d pay the same tax rates as any other ordinary income.
Long-term capital gains taxes: “For any position that somebody’s held for over a year, you get preferential tax treatment, known as long-term capital gains,” Chavis said. “Those rates depend on your income level.”
For most everyday investors, buy-and-hold investing is the best way to build wealth for the long term – and that doesn’t involve frequent trading.
The best time to start investing is today
If you’re new to self-directed investing, it can be a daunting feat. But Tran and Chavis both stressed two sentiments: (1) The best time to start is now, and (2) There are several resources you can take advantage of to learn more.
“If you’re feeling overwhelmed or unsure, just find one place to start learning more about how to manage your money and how to start investing,” Tran said. “Pick up a personal finance book,” she added, or find a blog or money podcast that you feel resonates with you.
“The best time to start investing is always today,” Chavis said.
The TikTok hashtag “#investing” has amassed over 2.8 billion views on the mobile video app as young people flock to the platform to learn about the stock market.
While there’s plenty of helpful information, there’s also a lot of bad advice.
Insider asked two financial experts to watch and review nine popular TikTok investing videos with questionable advice. Here’s what they had to say.
The investing side of TikTok, better known as “StockTok”, is ballooning, with the TikTok hashtag “#investing” garnering over 2.8 billion views. Many videos with tagged with #investing are centered around investing tips, and novice traders on the app have said they often heed the advice.
Thirty-six-year-old Douglas Boneparth, who provides investing advice to Millennials through his firm Bone Fide Wealth, said he loves the greater attention given to the world of investing through social media. But with the democratization of the stock market comes a lot of misinformation and “cringe.”
“It can get loud and noisy, and if you follow the wrong thing you can make some mistakes you really regret,” he said.
Insider asked three market experts for their take on nine popular TikTok investing videos with questionable advice.
Boneparth, along with Sam Stovall, chief investment strategist at CFRA, spoke with Insider for the story. Five of the TikTokers did not respond to Insider’s request for comment, and two couldn’t be reached through social media.
A screenshot of Kris Kohn’s TikTok video about 401Ks.
TikTok
Kris Krohn, @kriskrohn, advised his 832,000 followers to avoid the “401K scam” in an August 2020 video. Krohn, known for his real estate-investing advice, said “max out your 401K could be the dumbest advice that I’ve ever heard for anyone that wants to take control of their financial future.”
“I admire his passion and love for real estate, but this is just factually incorrect,” Boneparth said. “A 401k is not a scam, it offers tax advantages.”
Sam Stoval said the advice is good “only if you like to throw away money, and if you are a believer in illogical conclusions.”
“Maxing your company’s 401K match will get you free money, since the company will give you – free of charge – all or some of your contributions,” Stovall said.
Plus he said stocks, which 401Ks can invest in, have delivered an 11% compound annual total return since 1946, not the 1% Krohn claimed in the video. The retirement accounts can ensure “the building of a substantial retirement nest egg,” he said.
Screenshot of TikTok video on how to make a million dollars
TikTok
The @teen.executive account, which has 187,500 followers, said people can make a million dollars or more if they use soap and shampoo samples from hotels, saving about $45 per month, and investing those savings into the S&P 500.
Stovall said that practically saving money whenever possible and investing those savings “is indeed useful advice toward becoming a millionaire by the time you retire.”
But, “who’s spending $45 a month on soap?” Boneparth said, “and you still have to pay for the hotel room.”
Boneparth, who wondered if the video was made as a joke, said penny pinching on the small things isn’t the path to financial independence.
“Soap alone isn’t going to get you a million dollars here.”
A screenshot from the @chadandjenny TikTok investing video
TikTok
The couple from the @chadandjenny account told their 116,000 followers that they make money by buying stocks that go up and then selling at the top.
The video’s advice reminded Stovall of a humorous quote from the Great Depression to buy stocks “that go up, and if they don’t go up, don’t buy them.”
Boneparth said the couple is actually describing momentum trading, in which investors have to time the market, which is “very difficult.”
“You can be very wrong trying to do momentum trading and guess when the stock is going to go up or down,” he said.
From a constructive perspective, the video “encourages novice investors to learn about technical analysis, focusing on: turnaround spotting, trend following, and topping patterns,” Stovall said.
In a response to Insider on TikTok, the user said, “The strategy I use specifically is referred to as scalping.” He said it’s “similar to momentum trading but much more short term.”
A screenshot from the @atomcash TikTok video about AMC shares.
TikTok
Amid the resurgence in meme-stock mania around AMC Entertainment, the @atomcash account, which has 1,400 followers, said, “Mathematically speaking, it is statistically possible that AMC can reach anywhere from 100k a share to 500 or even a million dollars a share.”
“There is a huge difference between being ‘statistically possible’ and ‘realistic,'” Stovall said.
At even just $1,000 per share, the company, which is currently trading at all-time highs around $45, would be a $500 billion business.
“It’s just absolutely ludicrous to think that AMC, a company that’s bleeding cash and trying to shore up its balance sheet and survive would be worth something slightly less than Tesla,” Boneparth said.
The creator behind @ceowatchlist publishes regular TikToks encouraging his 822,000 followers to track public investing records of CEO’s, senators, and other rich people and buy what they buy.
It’s a piece of advice that a lot of investors follow, seeing how many attend the Berkshire Hathaway annual meeting and read Warren Buffett’s letter to investors, Stovall said.
“A problem with buying what rich people own, however, is that these rich people probably don’t publish a newsletter telling when to buy and sell, along with publishing a track record,” Stovall added. “Therefore, blindly buying what rich people own means you may get in late and never know when to get out.”
Tik Tok Creator @Chris.stocks detailed to his followers what a support and resistance level is, and said when you see a stock nearing it’s support or resistance level, you can predict what’s going to happen, and make money.
“That is much of the basis behind technical analysts. ‘The trend is your friend until it ends,'” said Stovall.
Boneparth said the video is a foray into how to use technical analysis for trading, but warned that the skill takes time to practice.
“There’s no secret formula to getting rich,” said Boneparth. “I’m glad people are getting interested but that’s not long-term investing. You just can’t watch this video and go buying and selling.
In another TikTok video slamming retirement accounts, @realitycheck2020 says that investors shouldn’t use retirement funds, as those charge fees while your money loses value. His solution is for investors to put money in an S&P 500 index fund, and then look for opportunities in new IPOs, cryptocurrencies, and real estate.
Stovall clarified that most retirement accounts allow you to invest in the S&P 500 at a low cost.
Boneparth summed up this video has “really broad financial advice from someone spouting their opinions about asset classes.”
“It’s not backed with any information that would help someone. It’s all predicated on FOMO, of a market that’s been treating investors well for taking risk,” he said.
@tdorriz tells Tik Tok that investors can turn their $1,400 “stimmy” (stimulus) into $10,000 by buying SPACs that are about to acquire a target company.
“If these target companies are any good, these stocks will easily double or triple overnight,” @tdorriz said in a TikTok Boneparth said this investor is incorrectly linking correlation and causation, and urged investors to do their own due diligence.
“To just go buy any SPAC and not understand is a disservice,” said Boneparth. “This advice assumes that all SPACs make money. There are no investment guarantees!” Stovall added.
In a response to Insider on Twitter, the TikToker said the idea “flopped,” but noted his video was just his opinion not advice. “80% of the stocks I buy go up in my opinion,” he said in a message.
A TikTok from @rickrahim tells investors to take out a low interest loan, “plow it all into crypto,” and take out a tiny bit of profits each month to make monthly interest payments. Boneparth and Stovall both had strong reactions to this one.
“If he’s trolling, very funny. If he’s not, that’s an extremely dangerous, borderline stupid idea,” Boneparth said. ” Do not lever yourself to invest in any speculative assets. The risk is not worth the reward. Very dangerous, terrible, terrible financial advice.”
“Anyone who believes that a particular asset class ‘always goes up’ deserves to lose money,” Stovall said. “Also, why compound a possible mistake by taking out a loan (which carries its own cost) to purchase the investment you didn’t bother to research, or, worse yet, buying on margin? You’ll only end up losing more than you initially invested.”
Investing can be right for anyone, not just the wealthy or finance-minded.
Tim Robberts/DigitalVision/Getty
Over the past year, dozens of financial professionals sat down with Business Insider to discuss millennials and their money.
They’ve offered advice and inspiration on everything from setting goals to tackling student-loan debt to investing.
Here are 21 of their best insights to help you make a plan for your money.
This article is part of a series focused on millennial financial empowerment called Master your Money.
A comprehensive financial plan maps out all aspects of your money to chart a path to your goals.
Stígur Már Karlsson/Heimsmyndir/E+/Getty
Start with what you want to achieve
“Let your life lead your money — that’s the first thing. What is it that you aspire to do? What do you value? What are your goals? Let’s start there. Then the money is not necessarily a second. It’s a complement; it’s a partner.”
“When I see people with a financial plan, one of the things I tell them is to expect the unexpected.
“As long as you’re walking on this earth, you’re going to have an unexpected expense. I call them ‘the known unknown,’ and those are expenses that you know are going to happen, but you don’t know when.”
— Tania Brown, certified financial planner with SaverLife:
Automate your money to make progress a no-brainer
“What I like to have clients do is automate their transfers to whatever the goals are, things that they’re trying to achieve, and have those in separate accounts so that they can clearly see their progress. And it’s all just sort of set up, and it’s happening for them. So they make the decision once, and then it triggers on its own.”
“The main point of financial planning is to use your money as a tool for life. As far as the budget goes, understanding what you actually want to do in your life is very important to build that plan.”
— Eric Roberge, certified financial planner and founder of Beyond Your Hammock
Find out where your money is going already
“I would say that the first step — I’m always surprised at how many people either discount this or put this off or just don’t know — is really being honest about how you’re spending your money. You have to know how much is coming in versus how much is going out on a monthly basis.
“It might sound simple, but to me that’s the very essence of what it means to start thinking about a budget. That term doesn’t have to be so scary, but if you don’t take that step back and evaluate this, you’re never going to be able to move forward.”
— Kelly Lannan, the vice president of Fidelity Investment’s Young Investors for Personal Investing
Add savings into that list
“Start tracking how much you save each year and aim to save 10% to 15% of your income as an ‘investment’ in yourself. You’ll be amazed how quickly it will add up.”
— Kristi Rodriguez, vice president of thought leadership for Nationwide Financial
Consider giving your credit cards a break
“I always suggest trying a cash diet, where maybe you take a week or a couple of weeks where you don’t use a credit card and start using cash only.
“That way we’re just a little bit more mindful about how we spend. I know we use credit cards for everything today, but this way it makes us really be more thoughtful.”
— Carrie Schwab-Pomerantz, certified financial planner and board chair and president of the Charles Schwab Foundation
Find your support system
“A budget is essential, but it can be even more powerful when you have that support system of people who share the same goals. That’s what we’ve seen to be extremely effective and powerful.”
— Sunny Israni, chartered financial analyst and founder and CEO of Clasp
Debt can feel like a heavy burden. But with a plan, you can begin to tackle it systematically.
Jens Schlueter/Stringer/Getty Images
Build a personal balance sheet
“To quote my grandmother, ‘Facts are stubborn things.’ And so I think that the mistake that many people make is embarrassment, shame, bury their head in the sand.
“The best thing that anyone with any kind of debt can do is build a personal balance sheet. It doesn’t have to be fancy. It can just be pencil to paper on a legal pad with your debts on one side, and your assets on another.
“And human capital is an asset, too. So, if you have a salary, if you have money coming in, certainly list that. But those facts are stubborn things, and you need to know exactly what you’re facing, what your payments are, and have an idea of how you’re going to approach it.”
— Alison Hutchinson, senior vice president at Brown Brothers Harriman
List every loan and its terms
“The biggest advice is to get organized around your student loans. Write them all down, and see what you have to tackle.
“It always seems like a bigger task at first than it really is. And once you get organized, you can kind of see the big picture a lot clearer, so you know who your loans are with, are they subsidized, are they unsubsidized, are they private loans, are they federal loans, and getting an understanding around that. And then just going and looking at your options.”
“Irrespective of whether you decide to take on your partner’s debt or not, that debt is going to affect your relationship. Because it will either limit your partner’s ability to do certain things or it’ll limit your ability as a team to be able to go out and do future things together.
“So what I recommend to couples is to tackle debt as a team, even if you’re not taking over that person’s debt, or paying, or contributing to the payment of that debt. The best part about being in a relationship is you have a partner to help you navigate all that.”
“Review your credit reports regularly. They provide a complete record of your debt-related financial relationships, can be used as a resource for working with your creditors on payment planning, and are a critical tool in managing your debt through difficult financial situations.
“Keeping your debts as low as possible will put you in a better financial position when the economy emerges from this crisis.”
— Rod Griffin, senior director of consumer education and advocacy at Experian
Investing can be right for anyone, not just the wealthy or finance-minded.
LPETTET/E+/Getty
Leave your emotions out of it
“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. If one lacks either the will, skill, or time, passive investing is likely a better strategy.”
“You don’t want to be silly about how you invest and incur costs that are perhaps not necessary, but I don’t think there’s any amount that’s too small.
“I’d rather you do something than nothing, especially with a 401(k) when your employer will match whatever you put in. That’s basically a 100% guaranteed return. You don’t get a lot of free lunches, as we say in finance. That might be one of the few, and you’re giving up on an incredible opportunity if you don’t put any money away at all.”
— Scott Pedvis, financial advisor at Wells Fargo
Follow your plan and readjust when you need to
“It’s very important to stick to your game plan, to understand what you’re going to be using the money for, and really know that there are going to be points where the market is not doing so great.
“But if you have a long-term game plan that you want to stay in with a risk associated with your investment portfolio, it’s best to stay the course. And if you can’t stomach the risk the portfolio you’re in might be subject to, then reevaluate and determine whether it makes sense to scale that risk down.”
— Joseph Edmondson, certified financial planner at Equitable Advisors
Ignore the day-to-day market movements
“One of the big things you want to know is to take comfort in the context.
“You don’t want to focus on the 30 to 45 worst days we have seen in 10 years and let it make you forget about the good times that we had for 10 straight years. You want to have that context and know that long-term investors almost always win.”
— Kevin Matthews, a financial advisor and founder of Building Bread
Managing your money is an ongoing task, and you’re better off striving for consistency than perfection.
Luis Alvarez/DigitalVision/Getty
Take a long-term view
“We’re living through extraordinary times. While each of us is learning to persevere through this moment, don’t anchor your vision of the future to the current environment.”
— Sandi Bragar, certified financial planner and partner and managing director in planning, strategy, and research at Aspiriant
Identify what you can control
“What I find people do is they focus on a thing that they cannot control and ignore the things they can.
“For instance, if someone loses their job, they had no control over the job loss, but you have 100% control over calling your creditors and letting them know you may not be able to pay the bills. You have 100% control of going in your budget and cutting out unnecessary items, like cable.”
— Tania Brown
Stop comparing your situation to others
“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.
“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.”
— Kelly Lannan
Don’t wait until tomorrow or next month to get back on track
“When you’re looking at your spending for the month, if you go over on a category and then you say, ‘OK, well, I’ll just start over next month,’ I always tell people that’s not the way to go about it.
“It’s the same with nutrition or health goals. It’s not like, ‘OK, I’ll just start over next month’ or ‘I’ll start over next year,’ but it’s ‘OK, what can I do for the rest of the day to make this better?’ Or ‘What can I do tomorrow to make this situation better?’ So maybe it’s ‘OK, if I overspent on this category, is there another category that I can cut back on for the rest of the week or month?'”
“Being good with money doesn’t mean you’re perfect with money. None of us are. I think that’s one of the things that we have to tell people to come to grips with: You will do things that you’ll look back and wonder why. But no one’s perfect with money.”
