Invest your spare change
Sumners mentioned how his parents and grandparents were able to buy homes decades ago despite making significantly less than he does now. He added the necessary caveat about inflation but is still upset that many people can’t afford rent.
“Why are we allowing it?!” he asked.
One way that his parents and grandparents may have been able to buy their homes was by investing their money—even if they didn’t make much.
Sumners is only 20, so he has at least 45 more years until retirement. Thanks to compound interest, he has plenty of time to set money aside and watch it grow.
One way to benefit from the magic of compound interest on your day-to-day spending is through an automated investing app called Acorns.
With Acorns, you can invest your spare changes from your daily purchases without clicking a button. All you have to do is sign up, link your bank account and start spending as you normally would. From there, Acorns will automatically round up each purchase and invest the remainder in a diversified smart portfolio.
Sign up now and get a $20 bonus investment.
There are also multiple types of high-yield savings accounts that can help your money grow faster.
If you’re looking to build an emergency savings fund, or you want to work toward any big financial goal, check out our list of the Best High-Yield Savings Accounts of 2024 so you can choose the best one to grow your money over time — and make checking your bank balance a little more exciting.
Stick to a budget
Sumners said that he refuses to get a second job. “I do not want to hear the old saying, ‘Pull yourself up from your bootstraps, work 90 hours a week,’” he yelled. “That’s not the goal, guys! That’s not! That should not be our standard!”
Understandably, Sumners doesn’t want to burn himself out by working overtime or finding a side hustle. However, to stretch his income from his current job, it would be useful for Sumners to make a budget and stick to it.
The beauty of budgeting is that it's tailored to your lifestyle, values, and goals. No two budgets are the same, and that's perfectly okay.
If you're looking for a budgeting tool that's easy to use, comprehensive, and can help you stay on top of your finances, look no further than Empower.
Empower is a digital suite of tools designed to help you organize budgets, create a retirement plan, and monitor your cash flow so you can make smart financial decisions based on your needs.
By signing up with Empower, users gain access to a free financial dashboard where all their accounts can be conveniently monitored. Whether it’s maximizing a budget like Sumners or simply staying on top of your finances, Empower's comprehensive overview can help you make smart spending decisions while saving for your future goals.
Pay down debt at a faster rate
In an interview with Fox News, Sumners mentioned that he went straight from high school to working in the car industry.
“[I] didn’t go to college because the prices of student loans are ridiculous,” he said in the interview. “Even after college, I would still have to pay off those loans and be stuck in a hard spot, like every other American is right now.”
Sumners is correct that many Americans are in student loan debt. The Education Data Initiative reported that 43.2 million borrowers owe an average of $37,088 in federal student loan debt.
It might be worth refinancing your loan if you struggle to pay off your student debt.
Credible is an online marketplace that allows you to compare refinancing rates from up to seven lenders for free without damaging your credit score.
All you have to do is provide some information about yourself, and they’ll take on the legwork of shopping around the best available rates for you.
It can feel daunting to watch your debt pile up, but that’s why personal finance celebrity Dave Ramsey’s “snowball method” could be helpful: simply start by paying off your smallest debt first.
If you have debt from multiple lenders, consider a debt consolidation loan through Credible. By doing this, you’ll be able to pay down your debt with one monthly payment rather than making payments on multiple loans at varying interest rates.
After answering a few simple questions about your financial situation, Credible will provide you with a list of loan rates from top lenders within just a few minutes. Then, you can compare the loans in one place and see which works best for you.
