Financial Lessons Millennials Should Be Thankful For

Millennials (those born between 1980 and 2000) make up one of the highest unemployment rates in the country.* As a result, all of the classic milestones of adulthood-marriage, kids, mortgage-are happening later in life.  However, growing up as Generation Y has its advantages- hard money lessons! These economic clouds that hang over the heads of Gen Y actually have a silver lining.

1.      Lesson 1-Hard Financial Lessons Have Been Learned Early  Those of us described as Millennials learned (and understood) at a very young age how money works, and why it’s important to live within one’s budget. Our parents were frugal (for the most part) because of the downturn of the economy. Not overextending on loans, saving pennies, and not spending more than you earn were lessons we were forced to reckon with.

2.      Lesson 2-Expectations Have Been Revised  Gone are the days of the traditional American Dream of an 18 bed 12 bath mansion on a hill with a butler named Jeeves and a Ferrari in the five car garage. Many young adults are realizing early on how utterly unrealistic these expectations are. More and more, Millennials are choosing to drive around their old beater car until it dies, and to bunk with their parents past graduation and well into their twenties. This used to be a major social stigma, but now it’s seen as the smarter choice.

3.      Lesson 3-Historic Collapses Are Also When Fortunes Are Made  When would you rather get off your butt and start a career- during an economic boom, or bust? The answer is a no-brainer. According to a recent study by T. Rowe Price, those who began systematically investing in equities in the past severe bear markets (or an economic downturn) were significantly better off 30 years later than investors who began in bull markets (when the stock market is thriving).

So yes, millennials have had it rough so far, being thrust into the workforce during uniquely volatile times. But the past is the past, and the future has yet to be determined. The full life story of Generation Y isn’t done!

Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

*According to The Fiscal Times

Does Your Financial Advisor Put You First?

Guest Writer: Greg Hildebrand – Honor Financial Group Financial Representative

The decision to trust someone with your hard earned money is very personal.  And since you’re basically hiring someone to provide expertise that you don’t have, it can be tough to sort out the good expertise form the fluff.

Whether you’re looking for a financial advisor on your own, or are referred by a loving uncle, consider these tips before you begin your relationship.

·         Customization – Your needs are unique and your investment strategy should be too!  Make sure your advisor takes the time to understand your personal goals in order to recommend a customized plan.

·         Compensation – Consider an advisor who charges a fee for services rather than commission-only sales from stocks, insurance, or other types of investments.  This helps ensure that they are working to grow your investments not profiting primarily from sales.

·         Experience – While it’s a good rule of thumb to look for at least three years of experience working as a financial advisor, be sure to ask what type of investing your advisor is most experienced in to ensure it is a good match for your goals.

·         Investment Approach – Every investor is unique.  So make sure your advisor’s investing philosophy isn’t too conservative or too aggressive for your investing style. 

·         Accessibility – Regardless of how much you have to invest, your financial advisor should be working with your best interests in mind.  Whether you prefer to meet monthly, quarterly, or even yearly to discuss your portfolio, if you have questions your advisor should always be available to give you answers. 

If you have questions and would like to meet with a financial advisor, Honor Financial Group is a great first step.  Give us a call to set up an appointment today.  And, don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.

Things Your Credit Union And Your Mom Have In Common

It’s hard to believe, and a little weird to think about, but your credit union and your mom have a lot more in common than you think! Check out these strange (but true!) similarities.

1.      They both care about you (a lot!) Your mother is your mother and will always love and adore you, no matter what. So does your credit union! Credit unions care about their members, and want them to succeed, especially financially.

2.      They give great advice! Just like your mom always tells you the truth and backs it up with great advice she earned from living and learning, your credit union does, too! Credit unions have been around for quite some time (Honor Credit Union has been around since 1934!) and the unique collections of professionals know their stuff. Walk into any credit union, and I’ll bet you can find someone within minutes that can help you with whatever financial situation you’re in.

3.      They both always have your back  Your mom would never leave you hanging in any situation- just like your credit union! If you’re in need of a personal loan, mortgage, or anything else financially related, your credit union can help, and quickly! Credit unions value their members (just like your mom values you!) and want to make sure you’re comfortable financially. If you aren’t, they want to assist you in getting on the right track. Take advantage of that help (but don’t forget to let them know- and mom-how much they’re appreciated)!

So go ahead, give mom (and your credit union) a call or a visit. They both would love to hear from you, and are ready to lend a helping hand whenever you need.

Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

Staying Financially Fit

Sticking to a budget is HARD. Just as hard as sticking to a fitness plan! But both are equally important to living a healthy lifestyle. To make sure you keep to your plan on each level, here are some tips to take into consideration.

1.      Make A Debt Diet Plan, And Stick To It  This first one sounds like a no-brainer, but it’s often the start-all, end-all for both keeping your weight and wallet in check. First step, you’ll have to tighten up your belt on other expenses, whether by reducing or eliminating them. Then, start paying off that debt!

2.      Resist Splurging  Every diet and weight loss plan you’ve come across has ultimately come down to one thing;  Eat less, exercise more. In financial speak, it’s spend less, save more!  Your chances of financial success will increase if you are aware of (and get rid of!) unnecessary spending. Do you really need that ice cream cone? Do you have to get that second pair of shoes? Keep your spending top of mind.

3.      It’s A Marathon, Not A Sprint  Those “get rich quick” and “lose 20lbs in two days” schemes are just that-unrealistic. It takes time, energy, and willpower to reach health and wealth goals. Buddying up for a fitness program increases your chances of following through- and having a financial friend help you stick to your money goals increases your chances of building your savings! Walk instead of shop, make dinner instead of eating out, and catch a good show on Netflix instead of dropping cash at the theater. You’ll probably have more fun that way, anyways!

No matter how you choose to start and continue with your fitness and financial programs to reach your goals, getting started is the first step. Just like a gym is there for you in your time of need, so is your local credit union! Stop in and see what credit union professionals can help you with to get your financials in check.

Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

To listen to 97.5 Y-Country’s Wild Bill and Honor’s Kaylee Williams talk about financial fitness, listen to the Mason Jar Monday episode below.