Improved Financial Advice for Broke Millennials Using Real Data

Experience — and data — based financial advice you can use…

Photo: Frame Harirak/Unsplash

Earlier today I came across an interesting read here on Medium.

It was “5 Financial Tips for Us, Broke Millennials” by Ryan Flynn.

In general, Mr. Flynn’s advice was sound, if not as complete as it could be.

On a couple of points, my research revealed the data contradict his advice.

What follows is a more complete analysis, with experience- and data-based advice to improve on and complete Mr. Flynn’s piece.

Mr. Flynn’s Advice

You can read Mr. Flynn’s advice in full by following the link above. However, here it is in brief:

1. “Start an IRA now — even if you can’t invest a lot in it” — and he then states his preference for a Roth IRA over a traditional one.
2. “Never buy a brand new car” — here he repeats the common misconception that the high depreciation of a new car makes it a bad deal, and suggests that leasing a car is a great option (if you have to have a car at all).
3. “Build an Emergency Fund” — and avoid investing any of it in the stock market.
4. “Utilize high-yield savings…