TIPS FOR MILLENNIALS TO ELIMINATE DEBT, POOL THEIR RESOURCES, BUY A HOME AND INVEST FOR THE FUTURE

App-ly yourself: Cut costs and save using a budgeting app for your phone. Most of the major financial institutions offer them. And as the world moves more to mobile payment, it’s only going to get easier to follow your money to the last cent, says Justin Lee, co-founder of the Vancouver-based Young Guys Finance.

High to low: Many millennials graduate with more than student loan debt. They often have racked up debt on lines of credit and credit cards too. Just like repaying a student loan, try to make regular payments on these sources of debt. And when extra cash is on hand, make additional payments against your highest interest debt first, Lee says. That helps create a snowball effect. As you eliminate high interest debt, more of your payment will go toward principal, shortening amortization on all debts.

A multi-pronged saving: Pay your debt, but save a little too. And Lee suggests cash-strapped millennials focus saving for the short- and long-term at the same time using a

tax-free savings account (TFSA). It’s more flexible than an RRSP in large part because withdrawals aren’t taxable. In addition, the tax deferring benefits of RRSP contributions are muted when starting out in your career compared with later on when you’re earning money in a higher tax bracket. “That’s when the RRSP deduction really becomes effective.” Don’t beat the market; be the

market: Consider low-cost ETFs — exchange traded funds — to save for retirement. Most track stock market performance rather than trying to beat it. And because the management fees are low, they often outperform in the long run actively managed mutual funds, which have higher fee costs. They do require an online brokerage account. If that’s not your thing, try index mutual funds offered at your financial institution instead. Although more expensive, the management fees are still cheaper than actively managed offerings. Or try a robo-adviser platform, Lee says. “It is the middle ground between the two.”