Jacob Gottlieb has some words of wisdom in the area of finance for millennials. This advice comes from a man with a wealth of experience accumulating and managing wealth. Every generation has encountered its own unique set of challenges and problems in the area of finance and economics. Gottlieb acknowledges that factor but suggests some ways millennials can cope and thrive despite those challenges.
Jacob Gottlieb suggests that the first step is to buy an affordable home. He believes that owning a home is generally a good idea. It rarely turns out to be a bad deal unless a person spends too much money. Gottlieb’s guideline involves not exceeding a purchase price that is more than two and one-half times gross annual income. The key to this advice is to purchase a home that is within the means of the new homeowner.
The second element of Gottlieb’s program to put millennials in good financial shape is quite simple, yet many times hard to implement. Sit down and prepare a budget that covers the basics and allows a person to move forward with a financial plan. It includes paying that home mortgage plus setting aside money for savings. The recommendation from the expert is to save fifteen percent each month. The goal is to accumulate enough money to pay six months of bills. This covers a person who is in between jobs or just needs to have funds for an emergency not covered by the regular monthly budget.
One line item in most of the budget’s of millennials is student debt. In recent years it has been difficult to attend and graduate from college without incurring this special type of debt. It was easy to obtain. The problem is that it is very difficult to eliminate it without just paying it off. No matter what type of payment arrangement is worked out, including deferments, interest continues to accrue. Jacob Gottlieb recommends paying off as much of this debt as possible and as quickly as a person is able in order to minimize interest. This will save a large sum of money over the years.
A retirement fund seems like an idea that can be put off. Gottlieb takes a different view and recommends starting one no later than age twenty-five. It can an employer funded or an individual investment but money investing at a young age will add up quickly. Retirement will arrive whether plans are made or ignored.
Pay bills quickly. That means when the bill arrives go ahead and pay it rather than waiting for the deadline. This will make credit ratings look good and save money by avoiding any possibility of a late charge. Another area Gottlieb suggests millennials examine is tax deductions. Learn about every legitimate one and seek out advice of experts. Every dollar saved in taxes can be used in all the areas previously discussed.
Gottlieb stresses the importance of financial education as a way to keep learning about the means to increase wealth. Passive income such as a rental property is one idea he promotes.
All of this advice is typical of Gottlieb’s career. He graduated from Brown University with a degree in economics and New York University with a medical degree. He has been a partner and officer since 2005 at Visium Management and is preparing to move to Altium Capital in 2018, a firm he has founded to specialize in seeking out small growth companies as investment options. Gottlieb is well-suited to give advice not only to millennials but to investors of all ages. Many of his ideas above can be utilized by anyone seeking financial freedom.