Fortune FinancialRobert Ebert, CFP®, AIF®, CLTCSenior Financial Consultant10261 Yellow Circle Dr.Minneapolis, MN 55343952-908-2508Bobby.Ebert@fortunefin.comwww.fortunefin.com/robert-ebert/

Financial Basics for MillennialsWith age comes responsibility, so if you're a youngadult in your 20s or 30s, chances are you've beenintroduced to the realities of adulthood. While you'reexcited by all the opportunities life has to offer, you'realso aware of your emerging financial responsibility.In the financial realm, the millennial generation(young adults born between 1981 and 1997) faces aunique set of challenges, including a competitive jobmarket and significant student loan debt that canmake it difficult to obtain financial stability.Poor money management can lead to debt, stress,and dependency on others. Fortunately, good moneymanagement skills can make it easier for you toaccomplish your personal goals. Become familiar withthe basics of planning now, and your future self willthank you for being responsible.

Figure out your financial goalsSetting goals is an important part of life, particularlywhen it comes to your finances. Over time, your goalswill probably change, which will likely require you tomake some adjustments. Start by asking yourself thefollowing questions:• What are my short-term goals (e.g., new car,

vacation)?• What are my intermediate-term goals (e.g., buying

a home)?• What are my long-term goals (e.g., saving for your

child's college education, retirement)?• How important is it for me to achieve each goal?• How much will I need to save for each goal?Once you have a clear picture of your goals, you canestablish a budget that will help you target them.

Build a budgetA budget helps you stay on track with your finances.There are several steps you'll need to take toestablish a budget. Start by identifying your currentmonthly income and expenses. This is easier than itsounds: Simply add up all of your sources of income.

Do the same thing with your expenses, making sureto include discretionary expenses (e.g.,entertainment, travel, hobbies) as well as fixedexpenses (e.g., housing, food, utilities,transportation).Compare the totals. Are you spending more than youearn? This means you'll need to make someadjustments to get back on track. Look at yourdiscretionary expenses to identify where you canscale back your spending. It might take some timeand self-discipline to get your budget where it needsto be, but you'll develop healthy financial habits alongthe way.On the other hand, you may discover that you haveextra money that you can put toward savings. Payyourself first by adding to your retirement account oremergency fund. Building up your savings using extraincome can help ensure that you accomplish yourfinancial goals over the long term.

Establish an emergency fundIt's an unpleasant thought, but a financial crisis couldstrike when you least expect it, so you'll want to beprepared. Protect yourself by setting up a cashreserve so you have funds available in the eventyou're confronted with an unexpected expense.Otherwise you may need to use money that you haveearmarked for another purpose--such as a downpayment on a home--or go into debt.You may be familiar with advice that you should havethree to six months' worth of living expenses in yourcash reserve. In reality, though, the amount youshould save depends on your particularcircumstances. Consider factors like job security,health, income, and debts owed when deciding howmuch money should be in your cash reserve.A good way to accumulate emergency funds is toearmark a percentage of your paycheck each payperiod. When you reach your goal, don't stop addingmoney--the more you have saved, the better off you'llbe.

Millennials face financialchallenges that areunique to theirgeneration. One of thefirst steps in overcomingthem is to understandsome basic financialconcepts.

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IMPORTANT DISCLOSURESBobby Ebert is a registered representative and investment advisor representative of CRI Securities, LLC and Securian Financial Services, Inc.North Star Consultants, Inc. - Insurance Products and Services. CRI Securities, LLC - Securities and Investments. Securian Financial Services,Inc. - Variable Products and Securities. Securities and investment advisory services offered through CRI Securities, LLC and Securian FinancialServices, Inc., Members FINRA/SIPC. CRI Securities, LLC is affiliated with Securian Financial Services, Inc. Fortune Financial is independentlyowned and operated.

Review your cash reserve either annually or whenyour financial situation changes. Major milestones likea new baby or homeownership will likely require someadjustments.

Be careful with credit cardsCredit cards can be useful in helping you monitor howmuch you spend, but they can also lead you to spendmore than you can afford. Before accepting a creditcard offer, evaluate it carefully by doing the following:• Read the terms and conditions closely• Know what the interest rate is and how it is

calculated• Understand hidden fees such as late-payment

charges and over-limit fees• Look for rewards and/or incentive programs that

will be most beneficial to youContact the credit card issuer if you have questionsabout the language used in an offer. And if you aretrying to decide between two or more credit cardoffers, be sure to evaluate them to determine whichwill work best for you.Bear in mind that your credit card use affects yourcredit score. Avoid overspending by setting a balancethat you're able to pay off fully each month. That way,you can safely build credit while being financiallyresponsible. Take into account that missed paymentsof any sort can cause your credit score to suffer. Inturn, this could make it more difficult and expensive toborrow money later.

Deal with your existing debtAt this stage in your life, you're probably dealing withdebt and wondering how to manage it. A 2015 PewResearch study revealed that 86% of millennials havedebt. (Source: "The Complex Story of AmericanDebt," July 2015) In particular, you might beconcerned about how to pay off your student loandebt.Fortunately, there are many repayment plans thatmake it easier to pay off student loans. Check to seewhether you qualify for income-sensitive repaymentoptions or Income-Based Repayment. Even if you'renot eligible, you may be able to refinance orconsolidate your loans to make the repaymentschedule easier on your budget. Explore all youroptions to find out what works best for you.

Beware of new borrowingYou're doing your best to pay off your existing debt,but you might find that you need to borrow more (forexample, for graduate school or a car). Think carefullybefore you borrow. Ask yourself the followingquestions before you do:• Is this purchase necessary?• Have you comparison-shopped to make sure

you're getting the best possible deal?• How much will this loan or line of credit cost over

time?• Can you afford to add another monthly payment to

your budget?• Will the interest rate change if you miss a

payment?• Are your personal finances in good shape at this

time, or should you wait to borrow until you've paidoff pre-existing debt?

Weigh your pre-existing debt against your need toborrow more and determine whether this is a wisedecision at this particular point in your life.

Take advantage of technologyAccess to technology at a young age is one majoradvantage that benefits millennials, compared withtheir parents and grandparents when they werestarting out. These days, there's virtually an app or aprogram for everything, and that includes financialbasics. Do your homework and find out which onescould be the most helpful to you. Do you need alertsto remind you to pay bills on time? Do you need helporganizing your finances? Are you looking for aprogram that allows you to examine your bank, creditcard, investment, and loan account activities all atonce?Researching different programs can also help withnumber crunching. Many financial apps offer built-incalculators that simplify tasks that may seemoverwhelming, such as breaking down a monthlybudget or figuring out a loan repayment plan.Experiment with what you find, and you'll most likelydevelop skills and insight that you can use as astarting point for future planning.Although apps are one way to get started, considerworking with a financial professional for a morepersonalized strategy.

Generally, millennials areoptimistic about theirfinancial futures in spiteof the challenges theyface. According to a PewResearch study, 32% ofmillennials believe theycurrently have enoughmoney to lead the livesthey want, while 53% ofmillennials expect tohave enough in thefuture.Source: "Millennials inAdulthood," PewResearch Center,Washington, D.C. (March7, 2014),pewsocialtrends.org

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