Editor's note: 9NEWS Mornings is touching on the stresses that tend to impact people within certain generations for our Generation Stressed week, Feb. 4-Feb. 8.
KUSA - Money is a big priority for most millennials, and tends to be a big source of daily stress.
People ages 25 to 34 (i.e. "millennials") have an average $42,000 in debt, according to Milwaukee-based financial services organization Northwestern Mutual's 2018 Planning & Progress Study.
With that in mind, we asked Scott Trench, author of “Set For Life," a book that focuses on obtaining financial freedom.
Trench also works for biggerpockets.com, a website that teaches people about how to achieve financial freedom through real estate.
3 common mistakes millennials make with money
1) Not tracking spending
Trench: Use apps to help you monitor where your money is going. There are so many different options. “Mint” and “Personal Capital" are good examples.
2) Not investing aggressively
Trench: Since millennials are young, if they start investing now, they’ll be able to accrue more money over time. Put a high concentration into stocks and real estate.
3) Not self-educating
Trench: To know what to invest in, you must do your research. There are so many options -- podcasts, books and blogs, to name a few.
3 pieces of advice for millennials who need to pay off debt
Know your debts
Trench: Look up your credit report! You can do it for free through major credit report agencies or creditkarma.com
Come up with a strategy
Trench: Pick the strategy that’s best for you. You can start by paying off smaller debts to gain momentum, or begin with the biggest debt that’s accruing the most interest.
Understand when it is (and isn't) appropriate to pay off debt
Trench: If I have a lot of student loans, and they’re at a very low interest rate, and I already have thought about maybe getting that to the lowest possible rate. I may prefer to invest, and again…invest aggressively ... in something that might earn a significantly greater return than the interest rate on that debt.
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